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20.03.2009
Credit-Rating upgrades Pridneprovskaya Energy Company LLC`s bonds to uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBB from uaB- (uaB minus) the long-term credit rating assigned to registered housing bonds (series A) issued by Dnepropetrovsk-based Pridneprovskaya Energy Company LLC (`issuer` or `company`). The amount of the issue is UAH16.2m, with the 4-year original maturity. Today the company constructs a residential building located in the city of Dnepropetrovsk. To revise the rating the agency considered issuer`s financial statements for 4Q08 and full 2008 and its other inside information.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The construction of the residential building located 12A, Komsomolska Str., Dnepropetrovsk, which premises to redeem the series A bonds is on the stage of completion, with the Statement of Delivery to be signed within the month.
Factors constraining the credit rating
- The issuer does not have experience in construction of residential buildings, neither 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 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
