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24.07.2009
Credit-Rating upgrades Kovalska Ferroconcrete Items Factory OJSC’s bonds to uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBBB from uaBBB- (uaBBB minus) the long-term credit rating assigned to registered housing bonds (series D, E) issued by Kiev-based Kovalska Ferroconcrete Items Factory OJSC (‘issuer’ or ‘company’) for the amount of UAH36.8m due Dec. 31, 2009. The outlook on the rating has been changed to stable. The company’s principal activity is production of ferroconcrete items and of concrete; investing and construction. Today the company implements 5 construction projects located in the city of Kiev. In the course of analysis Credit-Rating considered issuer’s financial statement for 2H2008 and its other inside information.
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.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
- Issuer’s leading positions in Kiev region in the segment of production of building materials, specifically of concrete.
- The issuer has experience in implementation of investing and construction projects as a general contractor; today the issuer as a general contractor and a customer has implemented a construction of a residential building located 42, Kasiyana, Kiev, which was financed with the funds raised from series A and B bonds, which are redeemed with the premises.
- A guarantee provided to the bond issue by Kovalska Ferroconcrete Items Factory CJSC, which has experience of implementation of 4 large investment and construction projects located in the city of Kiev.
Factors constraining the credit rating
- Competition in the segment of building materials.
- 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
