print
20.04.2006
“uaBB-” credit rating assigned to upcoming bond issue (B series) of ECOSORB Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaBB- credit rating to the scheduled registered interest-free (target) bond issue by Ukrainian Consortium Ecosorb (Kyiv), B series in the amount of UAH 9.877 million, C series in the amount of UAH 35.425 million with a circulation period of 3 years. The companys top priority activity is investment and construction. UC Ecosorb is currently managing construction projects in different cities of Ukraine: Kyiv, Rivne, AR Crimea.
Factors supporting the credit rating's level :
- Experience in realization of construction projects: the Issuer put 4 multi-storied buildings into operation: three three-storied in Kyiv and one five-storied in Rivne;
- The facility located in Kyiv on the intersection of Geroyiv Dnipra street and Geroyiv Stalingrada avenue which is to be financed through the bond issue (B series) is 30% completed;
- The Issuer is a member of construction project of residential complex in Kyiv which is to be financed through the bond issue (C series) and has all licensing documents approved and all residents moved out of the houses on the land plot designated for construction;
- Construction projects to be financed through the bond issue are managed in Kyiv, where prices on real estate kept growing over the past five years.
Factors restricting the credit rating's level :
- Lack of experience in redemption of target bonds through provision of residential and commercial facilities;
- Risks connected with time deadlines (according to the plan IV quarter, 2006) of operation start of the building which is to be financed through the bond issue (B series), while the rent period of the land plot expires July 2006;
- At the beginning of March, 2006 the construction of the residential complex to be financed through the bond issue (C series) was at the beginning stage;
- At the beginning of March, 2006 the Issuer had five construction projects to be financed through the bond issue; three of these projects are at the beginning stage of construction;
- Undetermined and unstable system of legal regulation and taxation of operations with construction and in particular with fund-raising.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
