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27.03.2009
Credit-Rating upgrades ATLANTA INVEST AND DEVELOPMENT LLC`s bonds to uaB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaB- (uaB minus) from uaCCC the long-term credit rating assigned to registered housing bonds (series A, B, C) issued by Kiev-based ATLANTA INVEST AND DEVELOPMENT LLC (`issuer` or `company`). The amount of the issue is UAH85.5m due Jul. 31, 2010. The company`s principal activity is investing and construction. Today the company constructs a residential building 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 obligation with `uaB` rating is characterized with LOW creditworthiness as compared to other Ukrainian obligors or debt obligations. There is very high dependency upon adverse commercial, financial and economic conditions. A `+` (plus) or `-` (minus) sign indicates rating`s intermediate levels within major categories (grades).
Factors maintaining the credit rating
- The construction readiness of the residential building located 66, Generala Naumova Str., Kiev is high being at 73% as of Dec. 31, 2008 (it rose by 3 p.p. over 4Q2008).
Factors constraining the credit rating
- Delays in construction of the mentioned residential building (the scheduled delivery term is 3Q2008 and the adjusted term is 3Q2009).
- The issuer does not have experience in investing and construction, neither in redemption of housing bonds.
- Issuer`s volatile performance in 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
