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27.04.2006
"uaCCC" credit rating assigned to upcoming bond issue of "Proizvodstvenniy Vector", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaCCC credit rating to the scheduled registered interest-free (target) bond issues by Proizvodstveny Vector, Ltd (Kyiv) of D series in the amount of UAH 36.1 million, E series in the amount of 84.1 with a circulation period of 4 years. The companys main activity is investment and construction. In the process of analysis Credit-Rating agency used the companys complete financial reports for 2002-2005, as well as inside information provided by the company.
Factors supporting the credit rating's level :
- The Issuer is involved in activity related to organization and financing of residential construction in Kyiv, where prices on accommodation kept growing over the past five years;
- Funds raised through the bond offering are to be used for construction of residential complex Vremena Goda, over 30 % of its planned design were completed by the end of March, 2006.
Factors restricting the credit rating's level :
- Lack of experience in realization of construction projects of residential buildings and bond redemption by providing facilities to their holders;
- Growth of obligations on interest-free (target) bonds together with previous bond issues and two new scheduled issues up to UAH 337.5 million;
- Unfinished construction project residential complex Vremena Goda is mortgaged on bank credit;
- 10% excess (including two planned issues) of aggregate amount of bonds to be redeemed through provision of facilities over the designed area of these facilities;
- Undetermined and unstable system of legal regulation and taxation of operations with construction and fund-raising.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
