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29.12.2008
Credit-Rating downgrades NIKA LTD`s bonds to uaCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaCC from uaB- (uaB minus) the long-term credit rating assigned to registered housing bonds (series A-E) issued by Kiev-based NIKA LTD LLC (`issuer` or `company`). The amount of the issue is UAH98.5m due Dec. 24, 2008. The rating outlook has been changed to stable. The company`s principal activity is investing and construction. Today the company constructs a residential building located in the city of Vyshgorod in Kiev Oblast. To revise the rating Credit-Rating considered issuer`s financial statements for 3Q and 9M2008 and its other inside information.
An obligor or a debt liability with uaCC credit rating is characterised with the VERY HIGH DEFAULT POSSIBILITY.
Factors constraining the credit rating
- Delay in construction of a residential building located 4a, Simonenka Str., located in the city of Vyshgorod, Kiev Oblast: in fact the delay made up over 1 year as of end-3Q2008.
- The issuer does not have experience in redemption of housing bonds.
- Issuer`s negative equity of UAH (2.7)m as of Sep. 30, 2008 prompted by issuer`s detrimental performance during the past few years.
- 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 analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.ua
