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23.06.2006
uaCCC+ credit rating assigned to upcoming bond issue of Trading company "Deka", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaCCC+ credit rating to the scheduled registered interest-free (special-purpose) bond issue (A-C series) by TC Deka, Ltd (Kyiv) in the amount of UAH 134.6 million with a circulation period of 2.5 years. The companys main activity is investment and construction. TC Deka Ltd is currently financing the construction of residential complex Vozdvizhenka in Podol district of Kyiv.
Factors supporting the credit rating's level:
- Funds from the bond offering are to be used for construction of residential block Vozdvizhenka, the client is OJSC M.P. Zagorodnego Trust Kyuvgorstroy-1;
- 11 of 27 construction projects to be financed through the bond offering are at the completion stage, 4 with walls up to the third floor, the rest is at the beginning stage;
- The Issuer is involved in the activity related to accommodation construction in Kyiv, where the prices kept growing over the past five years.
Factors restricting the credit rating's level:
- The Issuer was registered Mar. 2006, which complicates the assessment of development dynamics of the company and tells of the lack of experience in accommodation construction and sales, as well as public fund-raising for construction financing;
- The Issuer intends to issue bonds in the amount of UAH 134.6 million while the total balance is only UAH 0.035 million (as of 31.03.2006);
- 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)
