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01.09.2005
"uaBB-" credit rating assigned to upcoming bond issue of Agrostroypererabotka, Ltd.
Independent rating agency Credit-Rating announced that it awarded a long term “uaBB-” credit rating to the issuesof registered interest-free LLC Agrostroypererabotka, Ltd. bonds (А series) for the amount of UAH 25 million with a term of circulation of five years and (В series) for the amount of UAH 25 million with a term of circulation of three years. The company's primary activity is investing into and construction of residential, industrial and specialized objects.
Positive factors taken into account in the rating:
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increased demand for apartments and non-residential premises in the city of Kyiv, as well as the tendency towards a price rise for newly constructed apartments;
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experience in construction and commissioning of residential objects;
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the issuer has its own raw materials and production base which decreases the company's dependence upon suppliers and decreases its production costs;
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the company has orders until 2009 which consist of the construction of 600 thousand sq. meters of residential premises, 45 thousand sq. meters of office space more than 3,000 parking spaces;
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profitable activities of the issuer since 2003, the volume of net profit for the first six months of 2005 amounted to UAH 549.2 thousand.
Negative factors taken into account in the rating:
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absence of regulations for and volatility of the system of legislative control over and taxation of transactions related to construction and attraction of financing;
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the company plans to invest UAH 270.0 million of own capital till 2009 (when the amount of retained income as of July 1, 2005 was just UAH 2.5 million, respectively), which is 36. 5 and 1.2003 times less than the company's accounts payable;
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low volume of own capital, in particular, of the charter capital (as of July 1, 2005 – UAH 3,954.4 thousand and UAH 120.0 thousand);
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the volume of the issue exceeds the net profit by 45 times, and the company's own capital – by 6.3 times.
Information about ratings on the Ukrainian national scale is available at the internet site of the company Credit-Rating at www.credit-rating.com.ua, as well as REUTERS and BLOOMBERG information systems.
For more detailed information, please contact: Dmitriy Zadesenets, Kyiv +38 (044) 490-25-50, 490-25-54, cr@credit-rating.com.ua
