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26.03.2010
Credit-Rating upgrades AT Realty 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, B) issued by Dnepropetrovsk-based AT Realty LLC (‘issuer’ or ‘company’). The amount of the issue is UAH30.2m. The outlook on the rating is stable. The company’s principal activity is investing and construction. Today the company constructs a residential building located in the borough of Livadiya in Yalta. To revise the rating Credit-Rating considered issuer’s financial statements for 4Q10 and full 2009 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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The amount of funding to the construction of the building located 44A, Baturina Str. in the borough of Livadiya has increased to UAH18.9m (UAH17.1m as at Oct. 1, 2009) combined with its construction readiness raised to 82% (72% as at Oct. 1, 2009). The premises in this building are to redeem bonds of series A and B.
Factors constraining the credit rating
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The company falls behind the schedule of construction works (for around 3 months as at Jan. 1, 2010)
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The issuer does not have experience in investment and construction projects, neither in redemption of housing bonds.
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Issuer’s volatile 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
