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25.12.2008
Credit-Rating affirms PLANETA-BUD CJSC`s bonds at uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it affirmed at uaBBB the long-term credit rating assigned to registered housing bonds (series C-D) issued by Kiev-based PLANETA-BUD CJSC (`issuer` or `company`). The amount of the issue is UAH21.7m due Apr. 30, 2010. The company`s principal activity is investing and construction. Today the company implements a number of projects located in the city of Kiev and Kiev Oblast. In the course of analysis Credit-Rating considered issuer`s financial statements for 3Q2008 and its other inside information.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The issuer is incorporated with legally informal PLANETA group, which companies have operated in the construction sector since 1991.
- The group operates production facilities and structural subdivisions, which empower the company to supply the construction process on almost all stages, and to partially supply the construction process with own-produced building materials.
- Issuer`s information openness and transparency.
Factors constraining the credit rating
- The construction of a multistoried residential complex located Kiyevskaya Str., Brovary falls behind the schedule; this construction is financed with the funds raised from issuance of bonds of series C and D.
- The issuer does not have experience in redemption of housing bonds.
- Ongoing negative trends in Ukraine`s real estate sector.
- 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
