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29.03.2010
Credit-Rating downgrades Krymmedservice 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 the long-term credit rating assigned to registered housing bonds (series A) issued by Simferopol-based Krymmedservice LLC (‘issuer’ or ‘company’). The outlook on the rating is stable. The amount of the issue is UAH22.2m, with 2-year original maturity. The company’s principal activity is investing and construction. Today the company constructs a recreational facility located in the borough of Simeiz. To revise the rating Credit-Rating considered issuer’s financial statements for 4Q09 and full 2009 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 project of construction of the recreational facility located in Lugovskogo Str., borough of Simeiz (which premises to redeem the bond issue) involves Professional LLC, which has experience of construction of over 54K sq.m. of residential and commercial premises.
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The amount of funds invested in the project (UAH4.6m as at Dec. 31, 2009).
Factors constraining the credit rating
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Suspension of construction works on the project.
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The issuer does not have experience in redemption of housing bonds.
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Issuer’s poor 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
