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04.08.2009
Credit-Rating downgrades Asol PE’s issue rating to uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaCCC from uaB the long-term credit rating assigned to registered housing bonds (series A-E) issued by Odessa-based Asol Private Enterprise (‘issuer’ or ‘company’). The amount of the issue is UAH13.9m, with 3-year original maturity. The outlook on the rating has been changed to stable. The company’s principal activity is investing and construction. Today the company constructs 3 residential buildings located in the city of Odessa and in Odessa Oblast. In the course of analysis Credit-Rating considered issuer’s financial statements for 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
- According to the company the construction readiness of a residential building located Laboratornaya Str. in Krasny Khutor residential area of borough of Mizinkevitchy, Ovidiopol Districts of Odessa Oblast (which premises to redeem the bonds of series A-E) was 65% as of March 31, 2009, with this indicator remaining unchanged over 1Q2009.
Factors constraining the credit rating
- Deceleration in pace of construction works on the aforementioned building.
- Issuer’s unstable and poor performance indicators.
- The issuer does not have experience in residential construction, neither in redemption of housing bonds.
- 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
mailto:SRozumyak@credit-rating.com.ua
Denis Rudenko
DRudenko@credit-rating.ua
