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25.06.2009
Credit-Rating downgrades 135 Home-Building Combine Sbsd.`s bonds to uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaCCC from uaB+ (uaB plus) the long-term credit rating assigned to housing bonds issued by Kiev-based 135 Home-Building Combine, subsidiary of Renome LLC. The amount of the issue is UAH15.5m, with 2-year original maturity. The outlook on the rating has been changed to stable. The company`s core business is construction and production of ferroconcrete items. Today the company constructs 2 residential buildings located in the borough of Gorbanivka, Poltava Oblast. In the course of analysis Credit-Rating considered issuer`s financial statements for 4Q2008 and full 2008 and its other inside information.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
- The issuer has necessary experience in implementation of investment and construction projects as a contractor: 2007 saw commissioning of the 2nd stage of a residential building located 1, Okyabrska Revolutsiya Str., of overall floor space of 4,384.54 sq.m.
- The construction readiness of a residential building located Gorbanevska Str., borough of Gorbanivka, Poltava Oblast, which premises to redeem series A bonds was 35.5% as at Dec. 31, 2008.
Factors constraining the credit rating
- The issuer does not have experience in redemption of housing bonds.
- Delays in construction of the residential building, located Gorbanevska Str., borough of Gorbanivka, Poltava Oblast of up to 1 year.
- 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
