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17.03.2009
Credit-Rating upgrades Agrofirma Troyanda OJSC`s bonds to uaB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaB+ (uaB plus) from uaB the long-term credit rating assigned to registered housing bonds issued by Kiev-based Agrofirma Troyanda OJSC (`issuer` or `company`). The amounts of the issue are UAH129.1m (series A-D), UAH127.1m (series E-H) and UAH340.2m (series I-M), due Jul. 1, 2012. Today the company implements a project aimed at construction of a residential complex with social facilities and a parking and at improvement of natural monument Kristerovaya Gorka located in the city of Kiev. In the course of analysis Credit-Rating considered issuer`s financial statements for 4Q08 and full 2008 as well as its other inside information.
An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Factors maintaining the credit rating
- The amount of funding the construction of Kristerova Girka residential complex located 45, Vishgorodska Str., Kiev increased to UAH204.8m from UAH162.3m over 4Q2008.
- K.A.N. Development holding, which incorporates the project`s general contractor K.A.N. Stroy LLC, has necessary experience in construction.
Factors constraining the credit rating
- The issuer does not have experience in investing and construction, neither in redemption of housing bonds.
- Risk imposed by size of the project: the overall project`s size, the implementation will be performed in 12 phases, is 451.2K sq.m.
- Issuer`s unstable performance indicators recorded over 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
Denis Rudenko
DRudenko@credit-rating.ua
