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17.12.2008
Credit-Rating rates Villon LLC at uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaCCC to Lugansk-based Villon LLC (`issuer` or `company`). The company`s principal activity is investing and construction. Today the company constructs a multistoried residential building located in the city of Lugansk. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 and 9M2008 and its other inside information.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.
Factors constraining the credit rating
- The issuer participates in investment and construction projects on which all necessary licenses are obtained and a land plot of 0.5574 ha located 12A, Kotsubinskogo Str., city of Lugansk is leased.
Factors constraining the credit rating
- Dependency of issuer`s performance upon successful implementation of the project under ongoing negative trends in Ukraine`s real estate sector and no issuer`s experience in implementation of such projects.
- Issuer`s detrimental performance in 2005-2007 and 9M2008: the consolidated uncovered loss amounted to UAH0.4m as of Sep. 30, 2008.
- Instability in legislation and tax environment controlling both the construction industry and project financing.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and Communication Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.ua
