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01.03.2006
“uaCC” credit rating assigned to "REALBUD" Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term "uaCC" credit rating to REALBUD, Ltd. The main trend of the company’s activity is fund-raising for construction of accommodation and commercial real estate, construction management and sales of facilities.
Credit-Rating agency also announced the granting of a long-term "uaCC" credit rating to registered interest-free (target) bond issue (A-F series) in the amount of UAH 247.93 million with a circulation period of 2 years and 9 months.
Factors supporting the credit rating’s level:
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REALBUD, Ltd manages work related to organization and financing of construction of residential houses in Kyiv, where prices on real estate kept growing over the past 5 years.
Factors restricting the credit rating’s level:
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The issuer has no experience either in construction and sales of accommodation facilities or public fund-raising for construction;
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Negative value of the owned capital during 2002-2005 caused by uncovered loss in the amount of UAH 3.1 million by the end of 2005;
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The company’s summary liabilities exceeded the balance currency by 22% and amounted to UAH 14.2 million by the end of 2005;
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As of 02.14.2006 the realization of the construction project is at the stage of obtaining licensing documents which complicates forecasting the beginning of construction and fulfillment of obligations under the terms of the bond issue;
- Undetermined and unstable system of legal regulation and taxation of transactions connected with construction and fund-raising.
Should you need more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
