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19.01.2009
Credit-Rating places City.com LLC`s ratings on RWL
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it affirmed the long-term credit rating of uaBB assigned to Kiev-based City.com LLC (`company`) and the long-term credit rating of uaBB with negative outlook assigned to the company`s registered coupon bonds (series A) for the amount of UAH50m due Jul. 4, 2011and placed the ratings on the Rating Watch List (`RWL`).
The placement of the rating on RWL was prompted by the delay in payments with creditors by the offer of the company`s series A bonds to occur on Jan. 5, 2009. As of Jan. 5, 2009 the company redeemed 23% of the overall amount of series A bonds offered for before due redemption. The company has concluded debt restructurization agreements on 41.6% of indebtedness, with other 35.4% of indebtedness negotiated on restructurization. The rating will be removed from RWL once the negotiations have been completed.
The Rating Watch List intends for informing the financial market participants about possible changes of ratings in short-term prospective. The rating placed on RWL denotes that Credit-Rating is currently considering its change as a result of events or ongoing negative trends, which may negatively affect creditworthiness of a rating`s bearer.
Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.
For referential use:
City.com LLC is incorporated with Unitrade Group, which is owned by Vladimir Kolodyuk and
Vladimir Dobrovolskyi. Unitrade Group has operated in Ukraine`s IT sector starting from
1994. Unitrade Group owns retail brands Unitrade, City.com, Melofon, SamoBit, Udicom
wholesale company, Service Master company, which is servicing company and commercial
property developer, and Ixtone trade mark. The group`s turnover was recorded at USD450m
in 2007. The President of Unitrade Group is Vladimir Kolodyuk.
Information on all credit ratings assigned in accordance with the National 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
