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20.06.2006
uaBBB credit rating assigned to upcoming bond issue of "Zhytlobud-2", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaBBB credit rating to the scheduled registered interest-free (special-purpose) bond issue by JSC Zhytlobud-2 (Kharkiv) in the amount of UAH 6.99 million with a circulation period of 1 year. The companys main activity is construction. JSC Zhytlobud is currently managing the construction of 6 residential buildings in Kharkiv, 3 of which are to be put into operation by the end of this year.
Factors supporting the credit rating's level:
- experience in construction works and realization of construction projects of residential buildings (over the past 5 years 7 residential houses put into operation);
- the Issuer owns production capacities and structural subdivisions enough to service the construction process at practically al stages;
- funds raised from bond offering are to be used for the completion of residential building, which is about 70% complete.
Factors restricting the credit rating's level:
- the Issuers authorized fund is UAH 320.0 thousand, which is only 0.4% of the total balance;
- the Issuer has no experience in bond redemption by providing their holders with residential facilities;
- undetermined and unstable system of legal regulation and taxation of operations with construction.
For more detailed information, please contact
us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
