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23.05.2006
uaBB credit rating assigned to upcoming bond issue of "Business-Grand", 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 (A, B, C series) by PC Business-Grand ( Cherkassy) in the amount of UAH 16 million with a circulation period of 1 year. The companys main activity is wholesale and retail trade of food commodities and household goods. The company is currently managing construction project of a business-center in Cherkassy.
Factors supporting the credit rating's level:
- The Issuer acts as a client and investor of construction of a business-center in the central part of Cherkassy, where this kind of facilities is in demand;
- Experience in realization of construction projects of trade-office-storage complexes with total area of 13.3 thousand sq. m. (the area of the project is 10.3 thousand sq. m.);
- Besides the realization of the construction project of a business-center the Issuer manages wholesale and retail trade of food commodities and household goods, their net sales volume grew from UAH 24.2 million to 149.0 million over the past 5 years.
Factors restricting the credit rating's level:
- Lack of experience in bond redemption by providing commercial facilities;
- Realization of the construction project of business-center is at the stage of re-registration of land allotment and receiving construction permits;
- Low indices of the Issuers profitability and liquidity in a few last years, in particular the index of sales profitability was lower than or equal to 0.6%, fast liquidity 0.4;
- Undetermined and unstable system of legal regulation and taxation of operations with construction and in particular with fundraising.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
