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09.06.2010
Credit-Rating downgrades TOR LLC’s bonds 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 rating assigned to registered discount bonds (series A) issued by Kiev-based TOR Scientific and Manufacturing Centre LLC (‘issuer’ or ‘company’). The amount of the issue is UAH20m, with 5-year original maturity. The outlook on the rating is negative. The company’s principal activity is development and construction, and investing in real estate. Today the company is involved in 3 construction projects located in the city of Kiev and in Kiev Oblast. To revise the rating Credit-Rating considered issuer’s financial statements for 1Q2010 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.
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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Issuer’s experience: starting from 1995 the company has operated in architectural designing and construction sectors. In the past 6 years the issuer has built a number of office and residential buildings of 93.4K sq.m., including office centre located 172, Antonovitcha Str., Kiev.
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The amount of funds invested in construction of an office centre located 1-A, Industrialny Lane, in Kiev was recorded at UAH78m as at Apr. 1, 2010.
Factors constraining the credit rating
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Issuer’s significant debt burden.
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Delay in construction works on the office centre of around 12 months (as at Apr. 1, 2010), which is currently on the initial stage.
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Size of construction projects, which implementation significantly affects issuer’s performance.
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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
