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19.01.2006
“uaBB” credit rating assigned to upcoming bond issue of "Pobutservice" Ltd
Today, independent rating agency Credit-Rating has announced the granting of a long-term "uaBB" credit rating to the scheduled registered interest-free (target) bond (C-H series) issue by Industrial and Commercial Company Pobutservice, Ltd. in the amount of UAH 42 million with a circulation period of three years. The company’s activities are investment and construction. Pobutservice is currently managing the construction of apartment buildings in Sumy.
Factors supporting the credit rating’s level:
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The issuer organized and financed the construction of accommodation and business facilities in the city of Sumy and Sumy region, prices on the facilities have continued growing over the last five years;
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Positive experience in selling building projects – the issuer has put 17 construction objects into operation;
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Necessary production capacities and structural subdivisions for construction works at practically every level;
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Profitable activity over the last five years and the first nine months of 2005 – the net and undistributed revenue volumes as of Sept. 30, 2005 were UAH 1.6 and 5.2 million respectively;
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High indices of financial stability – 0.58 and of current liquidity – 0.71 as of Sept. 30, 2005.
Factors restricting the credit rating’s level:
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Lack of all licensing documents for construction of three out of seven objects, which will be financed through the bond offering;
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Lack of experience in financing construction through bond offering;
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Undetermined and unstable system of legal regulation and taxation of transactions connected with construction, in particular with fundraising.
Should you need more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
