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30.03.2009
Credit-Rating upgrades SVF KOLO 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+ the long-term credit rating assigned to registered housing bonds (series C, D) issued by Poltava-based SVF KOLO LLC (issuer or company). The amount of the issue is UAH20.2m, due Sep. 30, 2010. The companys principal activity is investing and construction. Today the company constructs a residential building located in the city of Poltava. To revise the rating Credit-Rating considered issuers financial statements for 4Q08 and full 2008 and its other inside information furnished by the company.
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 77A, Oktyabrska Str. Poltava (2 nd phase), which premises to redeem the series C and D bonds, is on the stage of completion.
- The issuer has experience in investing and construction, in fact it has commissioned a residential building of 8.3K sq.m. total floor area.
Factors constraining the credit rating
- The issuer does not have experience in redemption of housing bonds.
- The issuers equity is negative being UAH(4.3m) as of Dec. 31, 2008.
- Ongoing negative trends in Ukraines 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
