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03.04.2009
Credit-Rating places City of Vinnitsa on Rating Watch List
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it placed on Rating Watch List (`RWL`) the long-term credit rating assigned to the city of Vinnitsa and its issues of coupon bonds (series 1-A, 1-B, 1-C, 1-D, 1-E, 1-F) for the overall amount of UAH45m. The outlook on the rating has been changed to negative.
These rating actions have been prompted by the fact that the annual income plan of the city budget was poorly fulfilled during 2008 and January-February 2009, being accompanied by its aggravated liquidity. Moreover, the prospects over demand for land plots and communal property is likely to decline under adverse macroeconomic environment in the country, and that all will affect volumes of incomes to the city`s development budget and may constrain the process of cumulating budget resources.
The removal of the ratings from the RWL and their further revision are directly contingent upon timely and full meeting the commitments on the bond obligations, considering possible arrangements with the bondholders on the payment framework.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by 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 condition that negative tendencies are retained and current risks are realized.
The Rating Watch List intends for informing financial market participants about possible changes of ratings in short-term prospective. The rating placed on RWL denotes that Credit-Rating is currently considering its change as a result of events or ongoing trends, which may negatively affect creditworthiness of a rating`s bearer.
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
