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10.05.2005
uaB credit rating assigned to IC Comfort-Invest Ltd
Credit-Rating said today it assigned its “uaB” national scale long-term credit rating to Investment Company “Comfort-Invest”, Ltd. The main activity of the company is investment in residential and non-residential construction.
Positive factors considered while assigning the credit
rating:
- growing demand for housing and commercial buildings in the city of Lviv,
as
well as the present trend of price increases for such buildings; - existence of 9 construction investment projects, 6 of which are based in Lviv, where the company controls about 22 percent of total market of construction (4 units are planned to be set in operation by the end of 2005);
- considerable growth of assets and sales net weight in the last four years, volume of which by the end of 2004 amounted to 67,218,100 UAH and 55,853,100 UAH;
- present business diversification of the company that decreases dependence
on
income stream from one business sector; - existence of a group of enterprises controlled by the company, such diversity
providing a more steady income stream and increasing its market price.
Negative factors considered while assigning the credit
rating:
- negative index of own capital in 2003-2004 caused by existence of
unsecured
losses (total losses for this period amounted to about 1.1 million UAH); - high unit weight of debt issues in the structure of liabilities – the ratio of
total liabilities to assets at the end of 2004 was 98 percent, 64 percent of
which were current liabilities; - unsettled nature of the legal environment and tax structure related
to
construction and debt financing in particular
