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30.04.2009
Credit-Rating downgrades TIARA LLC`s bonds to uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaB from uaBB the long-term credit rating assigned to registered housing bonds (series B) issued by Boryspil-based TIARA LLC (`issuer` or `company`). The amount of the issue is UAH26m, due March 31, 2010. The outlook on the rating is negative. The company`s principal activity is investing and construction. Today the company implements a number of construction projects located in the city of Boryspil and a construction project located in the city of Pereyaslav-Khmelnitskyi. 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 issuer has necessary experience in residential construction; in fact the issuer has commissioned residential buildings of around 30K sq.m. total floor area.
Factors constraining the credit rating
- Delay in construction works at 71b, Golovatogo Str., Boryspil, which premises to redeem the series B bonds.
- The issuer does not have experience 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 in Credit-Rating`s corporate 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
