print
26.05.2005
uaCCC- credit rating assigned to upcoming bond issue of the Proizvodstvenniy Vector, Ltd.
May 26 – Credit-Rating, Ltd. said Thursday it assigned its “uaCCC-” national scale long-term passive registered bond issue credit rating to Proizvodstvenniy Vector, Ltd. The amount of the planned issue is 14.31 million UAH for a term of 5 years. The main activities of the company after reclassification of its business activities in 2004 are construction and investments.
Positive factors considered while assigning the credit rating:
· growing demand for apartments and stores in Kyiv’s new buildings, as well as a tendency for growing costs of new apartments, which form a matter for passive issue;
· the company will fulfill construction of a housing complex situated in the center of Kyiv;
· presence of main supporting documents for construction;
· company’s assets growth in the last three years and first quarter of 2005, the amount of which at the end of 2004 was 12,194,900 UAH.
Negative factors considered while assigning the credit rating:
· the Issuer started carrying out construction and investment activity only in 2004, which complicates definition of the quality of company development dynamics;
· unprofitable business in 2002 and 2004, the amount of unsecured losses at the end of first quarter of 2005 were 8,200,600 UAH;
· absence of experience in funding construction and sales of apartments and stores;
· construction activity has just begun on major project;
· indetermination and changeability of legislation regulation and operations taxation system related to construction and debt financing in particular.
