print
23.12.2010
Credit-Rating downgrades TOR 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 discount bonds (series A) issued by Kiev-based Scientific and Production Centre TOR LLC (‘issuer’ or ‘company’) for the amount of UAH29m with 5-year original maturity. The outlook on the rating is stable. The company’s principal activity is architectural designing, construction and investing in real estate. Today the company is involved in implementation of three construction projects located in the city of Kiev and Kiev Oblast. To revise the rating Credit-Rating considered issuer’s financial statements for 9M2010 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
-
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 delivered in 2007.
-
The amount of funds invested in construction of an office centre located 1-A, Industrialny Lane, in Kiev was recorded at UAH78m as at Oct. 1, 2010.
Factors constraining the credit rating
-
Issuer’s significant debt burden.
-
Scale of projects, which implementation significantly affects results of issuer’s performance.
-
A halt in construction works on the office centre which is currently on the initial stage, combined with falling behind the schedule of construction of over 12 months (as at Oct. 1, 2010),.
-
Stagnation 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 THOMSON REUTERS and BLOOMBERG information systems.
For more information, please contact:
Department of
Information and Communications
Sergey Rozumyak +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
