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15.07.2009
Credit-Rating revises Financial and Construction Centre Sozidatel LLC`s bond ratings
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaBB from uaBBB+ (uaBBB plus) the long-term credit rating assigned to registered housing bonds (series A-G) issued by Dnepropetrovsk-based Financial and Construction Centre Sozidatel LLC (`issuer` or `company`). The amount of the issue is UAH144.9m. The outlook on the rating has been changed to stable from negative. Credit-Rating has also affirmed at uaBBB+ (uaBBB plus) / negative outlook the long-term credit rating assigned to issuer`s registered housing bonds (series H) for the amount of UAH24.5m.
The company has issued bonds of series A-G and H for funding construction of a number of residential buildings located in the cities of Dnepropetrovsk and Krivyi Rih.
The downgrade of the rating assigned to bonds of series A-G was prompted by low pace of construction works at the 2 nd phase of the residential building located in Dnepropetrovsk (Kosmicheskaya and Mandrikovskaya Str.), which imposes risks of late building`s commissioning and consequently late redemption of series G bonds. At that the issuer has commissioned buildings and redeemed housing bonds of series A-E, with the report on redemption of series F bonds being considered by the State Commission for Securities and Stock Market.
The affirmation of the credit rating assigned to series H bonds was in response to ongoing commissioning the residential building located 16, Gazety Pravda Av., Dnepropetrovsk, for which funding the series H bonds were issued.
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.
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.
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 credit rating of uaBB envisages that in case of delay in implementation of the construction project for which the issuer issued the housing bonds, there is a probability of their full redemption in course of the upcoming 6 months after their maturity.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in Credit-Rating`s corporate web-site www.credit-rating.ua , as well as 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
