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16.07.2010
Credit-Rating Downgrades Bilyi Slon PC’s Bonds to uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaB from uaBB- (uaBB minus) the long-term credit rating assigned to registered housing bonds (series A) issued by Kharkiv-based Bilyi Slon Private Company (‘issuer’ or ‘company’). The amount of the issue is UAH79m. The outlook on the rating is stable. The company’s principal activity is investing and construction. Today the company constructs a residential complex located in the city of Kharkiv. 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.
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 issuer’s bonds are guaranteed by Invest-Market Ukraine CJSC, which has experience in construction of an office centre of 13.3K sq.m. floor area.
- The amount of funds invested in construction of a residential building located 3, Frontovaya Str., Kharkiv, where premises to redeem the bond of series A, is UAH43.7m.
Factors constraining the credit rating
- Suspension in construction works on the residential building, which may prompt issuer’s failure to timely meet its commitments on the financial obligations.
- The issuer does not have experience in redemption of housing bonds.
- Issuer’s volatile performance during the past few years.
- 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
