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16.04.2010
Credit-Rating downgrades GRANIT-Plus LLC bonds to uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaCCC from uaBB the long-term credit rating assigned to registered housing bonds (series A-C) issued by Kiev-based GRANIT-Plus LLC (‘issuer’ or ‘company’). The amount of the issue is UAH150.6m, due Dec. 31, 2010. The outlook on the rating is stable. The company’s principal activity is investing and construction. Today the company constructs a multi-storied residential building with installed social facilities and underground parking located in the city of Kiev. To revise the rating Credit-Rating considered issuer’s financial statements for 4Q2009 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 issuer (through its participants) is associated with SKF Granit LLC, which has necessary experience in construction projects as a general contractor and co-investor (it has built 7 residential buildings of over 100K sq.m. in Kiev).
Factors constraining the credit rating
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A halt in construction works on a multi-storied residential building located 36-a, Belorusska Str., Kiev – this project is to be financed with the company’s bonds of series A-C (the delay behind the company’s schedule is over 1 year).
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The issuer does not have experience in redemption of housing 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
