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22.05.2006
uaB credit rating assigned to upcoming bond issue of "ECOSORB", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaB credit rating to the scheduled registered interest-free (target) bond issue by Ukrainian Consortium Ecosorb (Kyiv) of E series in the amount of UAH 168 million with a circulation period till 05.20.2009. 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. In the analysis process Credit-rating agency used complete financial reports of the Issuer for 2000-2005 as well as other inside information provided by Ecosorb consortium including the information provided during the meetings of the rating agency specialists with the companys authorized representatives.
Factors supporting the credit rating's level:
- Experience in managing construction projects: 4 residential houses were put into operation: three multistoried houses in Kyiv and one five-storied in Rivne;
- Construction project to be financed through bond offering is managed in Kyiv region where demand for real estate grows together with the demand in Kyiv.
Factors restricting the credit rating's level:
- Lack of experience in redeeming target bonds by providing residential and commercial facilities;
- As of 05.11.2006 the construction project was at the stage of approving licensing documents for construction;
- The total obligations on bonds with the scheduled issue will increase from UAH 88.5 million to 256.25 million;
- 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)
