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28.07.2005
"uaCC" credit rating assigned to upcoming bond issue of Promagrosotsproekt, Ltd.
Independent rating agency Credit-Rating announced the award of a long term “uaCC” credit rating to the issuance of registered interest bearing bonds of Promagrosotsproekt, Ltd. in the amount of 6 million UAH for a five year period of circulation. The company is active in the construction of a cultural, amusement and sanative center in the town of Saki in the Crimean Autonomous Republic. Previously, the company dealt with community gas system projects in the Crimean Autonomous Republic.
Positive factors that were taken into account in the rating:
- Growth in the number of domestic and foreign tourist that visit the Crimean Autonomous Republic;
- The issuer is planning to implement the project of a cultural, amusement and sanative center in the seaside zone of the Crimean peninsular in the town of Saki which is the unique recreation center in the western part of the Crimean Autonomous Republic.
Negative factors that were taken into account in the rating:
- The issuer, due to the changes in type of its activities, has only started investment and construction activities since 2004, which hinders quality dynamic development of the company;
- Operation at a loss during the last two years and in the first quarter in 2005, the amount of uncovered losses as on the end of March 2005 made up 14.7 thousand UAH;
- As of July 14, 2005 the issuer has not gotten all of the necessary permits, documentation and agreements for the construction, the issuer does not have a business plan for implementation of the project;
- Unsettlement and tangibility of legislative regulation, taxation systems and operations connected with the construction industry, in particular in financial support.
Information about ratings in Ukrainian national scale is available at the internet site of the company Credit-Rating at http://www.credit-rating.com.ua.
For more detailed information, please contact Dmitriy Zadesenets, Kyiv +38(044)
490-25-50, 490-25-54, cr@credit-rating.com.ua
