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27.07.2009
Credit-Rating upgrades SVF KOLO LLC’s bonds to uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBB from uaB+ (uaB plus) the long-term credit rating assigned to registered housing bonds (series A, B) issued by Poltava-based SVF KOLO LLC (‘issuer’ or ‘company’). The amount of the issue is UAH17.5m due Sep. 30, 2009. The outlook on the rating is stable. The company’s principal activity is investing and construction. Today the company constructs a residential building located in the city of Poltava. To revise the rating Credit-Rating considered issuer’s financial statements for 1Q2009 and its other inside information.
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 issuer has commissioned a residential building located 77-A, Oktyabrska Str. Poltava (1st phase), which premises to redeem the bonds of series A and B.
Factors constraining the credit rating
- The issuer does not have experience in redemption of housing bonds.
- Issuer’s negative equity of UAH(4.8m) as at end-1Q2009.
- 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 Credit in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and analytic
department
Sergey Rozumyak +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
