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18.05.2006
uaCC+ credit rating assigned to upcoming bond issue of "Proizvodstvenniy Vector", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaCC+ credit rating to the scheduled registered interest-free (target) bond issue (F series) by Proizvodstveny Vector, Ltd (Kyiv) in the amount of UAH 50.1 million with a circulation period of 7 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;
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;
- Construction of residential complex to be financed through bond offering is at the stage of receiving permits for construction works;
- The Issuer raises only a part of funds necessary to realize the project which makes it harder to meet the deadlines;
- Growth of obligations on interest-free (target) bonds with five previous bond issues and scheduled issue is UAH 387.6 million;
- 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)
