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21.07.2009
Credit-Rating assigns Investment and Construction Group LLC’s upcoming bond issue uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaCCC to registered housing bonds (series A) to be issued by Kiev-based Investment and Construction Group LLC (‘issuer’ or ‘company’). The amount of the issue is UAH9.9m, due Nov. 30, 2011. The outlook on the rating is stable. The company’s core business is investing and construction. Today the company constructs a residential complex with installed social facilities and an underground parking garage, located in the city of Kiev. In the course of analysis Credit-Rating considered issuer’s financial statements for 2004-2008 and 1Q2009 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 amount of funds invested in construction of the residential complex with installed social facilities and an underground parking garage, located 17-23 Gonchara Str., Kiev (which premises to redeem the upcoming bond issue) is UAH46.7m as at March 31, 2009.
Factors constraining the credit rating
- The proprietary rights for the premises in the aforementioned residential complex are pledged as security for a bank loan.
- The issuer does not have necessary experience in investing and construction, neither in redemption of housing bonds.
- The aforementioned residential complex is currently on the initial stage of construction.
- 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 +38044490 25 50
SRozumyak@credit-rating.ua
Denis Rudenko
DRudenko@credit-rating.ua
