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27.07.2009
Credit-Rating rates Budspestservice LLC’s upcoming bond issues
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a short-term credit rating of uaK4 to registered housing bonds (series T) to be issued by Kiev-based Budspetsservice LLC (‘issuer’ or ‘company’) for the amount of UAH4.7m due Jan. 20, 2010. Credit-Rating has also assigned a long-term credit rating of uaBB to issuer’s registered housing bonds (series U, V) for the amount of UAH4.4m due March 20, 2010. The outlook on the ratings is stable. The company’s principal activity is investing and construction. Today the company constructs a residential block with social facilities, which is located in the city of Kiev. In the course of the rating procedure Credit-Rating considered issuer’s financial statements for 2004-2008 and 1Q2009 and its other inside information.
An obligor or a debt liability bearing uaK4 short-term rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. The obligor’s financial condition is insufficient to deter any foreseeable risks in the short-term period.
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.
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 construction readiness, the pace of works and the amount of funds invested in construction of the 1st complex of the residential block located Podvisotskogo Str. in Pechersk District of Kiev, the premises in which are to redeem the upcoming bonds.
- The issuer enjoys a financial backing, which enables it to conduct the construction works on the project.
Factors constraining the credit rating
- Ongoing negative trends in Ukraine’s real estate sector.
- The issuer does not have experience in investing and construction as a customer, neither in redemption of housing bonds.
- 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
