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24.03.2009
Credit-Rating upgrades Budspetsservice LLC`s bonds to uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaB from uaB- (uaB minus) the long-term credit rating assigned to registered housing bonds (series A-C, H-J, K-M and N-S) issued by Kiev-based Budspetsservice LLC (`issuer` or `company`). The amounts of the issues are UAH113.2m, UAH112.1m, UAH121.5m, and UAH169.4m respectively to the series stated due Jan. 20, 2010, March 20, 2010, May 20, 2010, and Dec. 20, 2010. The outlook on the rating has been changed to positive. The company`s principal activity is investing and construction. Today the company constructs a residential block with social facilities located in the city of Kiev. To revise the rating Credit-Rating considered issuer`s financial statements for 4Q08, and full 2008, and 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).
`Negative` outlook indicates that there is a possibility to downgrade the rating in the course of the year, on the condition that negative tendencies are maintained and that current risks are realized.
Factors maintaining the credit rating
- The amount of funding and of works conducted at construction of a residential block with social facilities located Podvisotskogo Str., Pechersk District of Kiev (the volume of unfinished works as at end-2008 was recorded at UAH339.1m, with UAH31.8m recorded in 4Q2008).
- The issuer enjoys a financial backing, which enables it to conduct the construction works on the project.
Factors constraining the credit rating
- The issuer does not have experience in investing and construction as a customer, neither in redemption of housing bonds.
- Company`s volatile indicators recorded over 2004-2008.
- 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
