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04.03.2009
Credit-Rating downgrades and places on RWL Kyivmiskbud-1 CJSC and Stolytsya Corp.
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaBBB/negative outlook from uaA+ (uaA plus) the long-term credit ratings assigned to Kiev-based Stolytsya Corporation (Corporation) and its issue of coupon bonds (series A) in the amount of UAH50m. The ratings have been simultaneously placed on Rating Watch List.
These rating actions have been prompted by concerns regarding timely payments on issuers coupon bonds offered for repayment.
The ratings removal from RWL and their further revision is directly contingent upon Corporations timely and full meeting its commitments on the bond obligations or successful negotiating with bondholders on restructuring the obligations.
The guarantors for the Corporations series A bonds are Kyivmiskbud-1 CJSC, Holding Kyivmiskbud-1 LLC, Trest Kyivmiskbud-1 CJSC, which are the Corporations participants.
Moreover, Credit-Rating has downgraded to uaBBB/negative outlook from uaA+ the long-term credit ratings assigned to Kiev-based Kyivmiskbud-1 CJSC and its UAH51.8m bond issue. The ratings have been placed on Rating Watch List . Thereat the agency retained at uaA+ the rating assigned to housing bonds (series J) issued by Holding Kyivmiskbud-1 LLC. The outlook on this rating is stable . The housing bonds have been issued for funding construction of apartments in the residential building located in Timoshenko Str. ( Kiev), which has already been commissioned.
Credit-Rating has also announced that it suspended the long-term credit rating assigned to Trest Kyivmiskbud-1 CJSCs issue of housing bonds (series A) in the total amount of UAH59m due to company's decision on delay of the registration of the bond issue.
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.
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.
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 ratings bearer.
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
Denis Rudenko
DRudenko@credit-rating.ua
