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11.01.2010
Credit-Rating downgrades Kyivmiskbud-1 CJSC’s ratings to uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaB from uaBB the long-term credit ratings assigned to Kyivmiskbud-1 CJSC (‘issuer’ or ‘company’) and to registered housing bonds (series A, B) amounting to UAH 51.8m. The outlook on the ratings is negative. The company’s principal activity is investing and construction. To revise the rating Credit-Rating considered issuer’s financial statements for 3Q and 9M2009 and other inside information.
An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions.
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 issuer is associated with Stolytsa Corporation, which companies form a vertically integrated structure, which enables to provide the full range of construction works.
Factors constraining the credit rating
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Stoppage of construction activities in many investing and construction projects of the issuer, namely the project for construction of the Leski-2 residential area based in Mykolayiv, which certain objects were to be funded with funds raised from series A and B housing bonds.
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The issuer’s low liquidity due to the crisis in the construction sector.
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Untimely fulfillment of the obligations on earlier repayment of the bonds of Stolytsa Corporation, where the issuer is a warrantor.
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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
