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21.06.2006
uaBBB credit rating assigned to upcoming bond issue of OJSC "Trust Zhytlobud-1"
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 (A-Z, A1-Z1, A2-C2 series) by OJSC Zhytlobud-1 Trust (Kharkiv) in the total amount of UAH 56.3 million with a circulation period of 6 months to 2.5 years. The companys main activity is construction. OJSC Zhytlobud-1 Trust is currently managing the construction of 10 residential buildings in Kharkiv.
Factors supporting the credit rating's level:
- Experience in construction works and realization of construction projects of residential buildings (over the past 10 years over 200 thousand sq. m. of living area were put into operation);
- The Issuer owns production capacities and structural subdivisions enough to manage construction process at practically all stages;
- Funds from the bond offering are to be used for the construction of 11 residential houses, 7 of which are to start operation by the end of 2006.
Factors restricting the credit rating's level:
- The Issuer has no experience in bond redemption by providing bond holders with residential facilities;
- The Issuers authorized capital is UAH 383.5 thousand , which makes up only 0.3% of the total balance;
- 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)
