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19.04.2006
"uaB" credit rating assigned to upcoming bond issue of Chernigivsky Plant of Building Materials, Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaB credit rating to the registered interest-free (target) bond issue (A series) by Chernigivsky Plant of Building Materials, Ltd (Chernigiv) in the amount of UAH 19.6 million with a circulation period till 01.25.2007 and redemption period till 06.12.2007. Main trend of activity of Chernigivsky Plant of Building Materials, Ltd is production of building materials (white and colored calcium silicate brick, porous concrete) and investment and construction activity.
Factors supporting the credit rating's level :
- The Issuer is involved in the activity related to organization and financing of accommodation construction in Kyiv, where the prices kept growing over the past five years;
- Works at the 3 rd and 4 th bays of residential complex in Bakinskaya street which is to be partially financed through bond offering are 25% completed;
- The Issuer also produces building materials which allows reducing expenses on construction and diversifying sources of income.
Factors restricting the credit rating's level :
- The issuer has no experience in construction and sales of residential and commercial facilities neither in redeeming bonds through providing apartments;
- Period between the scheduled date of beginning of house operation and date of bond redemption could be too short to complete the construction;
- Undetermined and unstable system of legal regulation and taxation of operations with construction and in particular fund-raising.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
