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25.11.2010
Credit-Rating downgrades Firma Ukrtorg 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- (uaB minus) the long-term credit rating assigned to registered housing bonds (series A and B) issued by Kiev-based Firma Ukrtorg LLC (‘issuer’ or ‘company’) for the amount of UAH530.1m. The outlook on the rating is stable. The company’s principal activity is investing and construction. The issuance of the bonds has been intended for raising funds to construction of a hotel and residential complex with installed social facilities located in the city of Kiev. To revise the rating Credit-Rating considered issuer’s financial statements for 3Q2010 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 amount of investments in construction of the hotel and residential complex located 92b, Akademik Glushkov Av., Kiev (the works to be completed on the project were recorded at UAH30.4m as at Sep. 30, 2010).
Factors constraining the credit rating
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Suspension of construction works on the above mentioned project.
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Issuer’s volatile performance indicators recorded in the past few years.
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The issuer does not have experience in investment and construction projects, neither in redemption of housing bonds.
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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
