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20.01.2010
Credit-Rating upgrades Investment and Construction Group LLC’s bonds to uaB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaB- from uaCCC the long-term credit rating assigned to registered housing bonds (series A) issued by Kiev-based Investment and Construction Group LLC (‘issuer’ or ‘company’). The amount of the issue is UAH9.9m due Nov. 30, 2011. The outlook on the rating is stable. The company’s principal activity is investing and construction. Today the company constructs a residential complex with social facilities and a parking garage located in the city of Kiev. To revise the rating Credit-Rating considered issuer’s financial statements for 9M2009 and its 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.
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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Financial backing from non-resident.
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The amount of funds invested in construction of the above mentioned complex located 17-23 Gonchara Str., Kiev (the volume of unfinished construction was recorded at UAH72.1m ; the growth in 3Q2009 – at UAH8.5m), which premises to redeem the bond issue.
Factors constraining the credit rating
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The proprietary rights for premises in the complex are pledged as security for a bank loan.
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The issuer does not have experience in implementation of investment and construction projects, neither in redemption of housing bonds.
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Issuer’s information opacity.
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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
