Press releases

print 29.06.2005

uaCCC- credit rating assigned to upcoming bond issue of the Proizvodstvenniy Vector, Ltd.

Today independent rating agency Credit-Rating, Ltd. announced about awarding of a long term “uaCCC-” credit rating to the issuance of registered passive (purpose) bonds (series B) of Proizvodstvenniy Vector, Ltd. in the amount of 58 million UAH for the 5 year period of circulation. The main course if activities of the company after its conversion in 2004 lies in the field of building industry and investments.

Positive factors that were taken into account in the rating:

Increase of demand on apartments and non residential premises in the newly-built areas in Kyiv as well as the tendency to price increase on apartments the letter are the subject of the emitter’s passive (purpose) bonds issuance;
The company will carry through the construction of the residential building complex in the central part of Kyiv;
The company has all necessary documents and permits for the construction;
The company’s assets accretion during the last three years and the first quarter in 2005, the amount of which made up 12 194, 9 thousand UAH at the end of 2004.

Negative factors that were included in the rating:

The emitter started to carry through building and investment activities only in 2004 and it encumbers to evaluate the dynamics quality development of the company;
Activities at a loss in 2002, the amount of uncovered losses at the end of the first quarter in 2005 made up (-) 8 200,6 thousand UAH;
The company has experience neither in raising money (financing) for construction nor in sale of apartments and premises for other purposes;
Increase of debt load in connection with the previous bonds emission that now is on the placement stage (phase) (14,3million UAH) and the emission s that is being planned (58 million UAH);
The construction is on its initial stage now (on June1, 2005);
unstable legislation basis, changes and lack of stability in legislation regulatory system and in taxation operations that deal with construction and raise of finances.