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06.01.2011
Credit-Rating assigns Don Stroy Com LLC’s bonds uaB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned its long-term credit rating of uaB+ (uaB plus) with stable outlook to registered housing bonds (series A-I) issued by Donetsk-based Don Stroy Com LLC (‘issuer’ or ‘company’) for the amount of UAH150m due Dec. 31, 2013. The company’s principal activity is investing and construction. Today the company constructs an administrative and a trade and entertainment complex with on-ground and underground parking garages located in the city of Donetsk. In the course of the rating procedure Credit-Rating analyzed issuer’s financial statements for 2005-2009 and 9M2010 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
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 funds invested in the above mentioned project located Artema Str., city of Donetsk (the volume of unfinished construction as at Sep. 30, 2010 was reported at UAH19m), which premises are to redeem bonds of series A-I.
Factors constraining the credit rating
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The issuer does not have experience in investing and construction projects, neither in redemption of housing bonds.
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Issuer’s loss-generating performance in the fast few years.
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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 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
