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22.06.2010
Credit-Rating Downgrades Grad Invest 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-C) issued by Kiev-based Grad Invest LLC (‘issuer’ or ‘company’). The amount of the issue is UAH264.2m. The outlook on the rating is stable. The company’s principal activity is investing and construction. Today the company implements a construction project located in the city of Kiev. 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 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
- The volume of works performed at construction of residential and office centre located 40, Ostrovskogo Str. in Kiev (UAH11.2m as at 1Q2010-end)
Factors constraining the credit rating
- A halt in construction works on the above mentioned centre, which is on the initial stage of construction.
- The issuer does not have experience in investment and construction projects neither in redemption of housing bonds.
- Ongoing negative trends in Ukraine’s real estate sector.
- 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
