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24.12.2009
Credit-Rating downgrades Krymmedservice LLC’s bonds to uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaB from uaBB- (uaBB minus) the long-term credit rating assigned to registered housing bonds (series A) issued by Simferopol-based Krymmedservice LLC (‘issuer’ or ‘company’). The amount of the issue is UAH22.2m, with 2-year original maturity. The outlook on the rating is negative. The company’s core business is investing and construction. To revise the rating Credit-Rating considered issuer’s financial statements for 3Q and 9M2009 and its other inside information.
Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.
Factors maintaining the credit rating
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The construction of a recreational complex located in Lugovskogo Str., borough of Simeiz (which premises to redeem the bond of series A) involves Professional LLC, which the general contractor of the project, and which has experience of building over 54K sq.m. of residential and non-residential premises.
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The amount of funds invested on construction of a recreational complex located in Lugovskogo Str., borough of Simeiz (UAH4.6m as at Sep. 30, 2009), which premises to redeem the bonds of series A.
Factors constraining the credit rating
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The works on the project are temporarily halted.
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The issuer does not have experience in redemption of housing bonds.
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Poor issuer’s performance indicators recorded in the past few years.
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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
