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16.09.2009
Credit-Rating upgrades Vyrobnychyi Vektor 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 the long-term credit rating assigned to registered housing bonds (series A, B, C, D, E) issued by Kiev-based Vyrobnychyi Vektor LLC (‘issuer’ or ‘company’) for the amount of UAH337.5m due May 27, 2010. The outlook on the rating is stable. The company’s principal activity is investing and construction. Today the company implements 3 construction projects located in the city of Kiev. To revise the rating Credit-Rating considered issuer’s financial statements for 2Q2009 and full 1H2009 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
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The Vremena Goda residential complex, which premises to redeem the housing bonds of series A-E has been commissioned.
Factors constraining the credit rating
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The issuer does not have experience in redemption of housing bonds.
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Risks imposed by size of issuer’s projects, in fact during 2009-2011 the issuer has been planning to commission 2 residential complexes namely Izumrudnyi and Pokrovskyi Posad of 355.1K total floor area, which are to be financed with the funds raised from the bonds offering.
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Ongoing negative trends in Ukraine’s real estate sector.
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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.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
