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29.10.2010
Credit-Rating Upgrades Vyrobnychyi Vektor LLC’s Bonds to uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBB from uaB- (uaB minus) the long-term credit rating assigned to registered housing bonds (series J, K, L) issued by Kiev-based Vyrobnychyi Vektor LLC (‘issuer’ or ‘company’). The amount of the issue is UAH105m, UAH19.8m, UAH230.1m respectively to the series stated. The outlook on the rating is stable. The company’s core business is investing and construction. Today the company implements three investment projects located in the city of Kiev. To revise the rating Credit-Rating considered issuer’s financial statements for 2Q2010 and generally 1H2010, and its other inside information.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by 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
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The issuer has experience in residential construction: it has commissioned Vremena Goda residential complex of total space floor of 123.5K sq.m.
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The issuer has experience in redemption of housing bonds.
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The construction of Izumrudnyi residential complex is on the stage of completion: as at end-June 2010 the 1st phase of the residential complex comprising of three 25-19-25-floor sections was being commissioned.
Factors constraining the credit rating
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Issuer’s loss-generating performance (UAH196.1m net loss reported for 1H2010).
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Stagnation 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
