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28.12.2009
Credit-Rating downgrades Ukrgaz LLC’s bonds to uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaCCC from uaB- (uaB minus) the long-term credit rating assigned to registered housing bonds (series C-G) issued by Kiev-based Ukrgaz LLC (‘issuer’ or ‘company’). The amount of the issue is UAH110.7 million. The outlook on the rating is stable. The company’s principal activity is investing and construction. Today the company constructs a residential complex located in the borough of Tchaiki, in Kiev Oblast. To revise the rating, Credit-Rating considered issuer’s financial statements for 3Q and 9M2009 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
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The issuer has experience in commissioning over 80K sq.m.of real estate by reconstruction and construction of residential buildings.
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The construction readiness of residential buildings of the 2nd and 3rd phases of the residential complex located 1, Lobanovskogo Str., the borough of Tchaiki (66% as at Sep. 30, 2009), which premises to redeem the bonds of series C-G and partially of series B.
Factors constraining the credit rating
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Delay in commissioning buildings of the 2nd phase of the residential complex (the term of delivery is 2010-2011), which, as anticipated, will prompt late redemption of series C-G bonds and failure to meet obligations on series B bonds.
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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
