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30.03.2006
“uaCCC” credit rating assigned to upcoming bond issue of Malvy-Market, Ltd
Today independent rating agency announced the granting of a long-term uaCCC credit rating to the scheduled registered interest-bearing bond issue (A, B series) by Malvy-Market, Ltd (Lviv) in the amount of UAH 5.7 million with a circulation period of 2 years. The main trend of the companys activity is retail and wholesale trade and production of industrial articles.
Factors supporting the credit rating's level :
- The issuers activity is well diversified: it gains income from wholesale and retail trade of footwear and furniture, services of assemblage of plastic windows and doors, inside redecoration of accommodation and commercial facilities, it also plans to manage construction of residential facilities;
- The issuer raises funds to finance construction of residential building in the town of Zhydachev situated in the Western region of Ukraine where there is a considerable shortage of new accommodation facilities which stimulates growing demand for them;
- Improved results of financial and economic performance of Malvy-Market, Ltd during 2004-2005: grand total grew 2 times to UAH 4.3 million, sales volume by 1.8 times to UAH 6.2 million, as of 12.31.2005 the companys net income was UAH 173.9 thousand;
- Practically all licensing documents received (except the building permit).
Factors restricting the credit rating's level :
- The issuer has no experience either in construction and sale of residential houses or in public fundraising for construction financing;
- The construction project is at the beginning stage;
- Undetermined and unstable system of legal regulation and taxation of transactions connected with construction and finance-raising.
For more detailed information, please contact
us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
