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13.09.2007
Upcoming bond issue by National Investment and Financial Group KSVU assigned uaCCC credit rating
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced the assignment of uaCCC long-term credit rating to upcoming UAH400m 9-year issue of registered discount bonds (A-F series) by Kiev-based National Investment and Financial Group KSVU (`Issuer` or `company`). The company`s principal activity is attracting funds of legal entities and their further repayment. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2005-2006 and 1H2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.
Factors maintaining the credit rating
- The Issuer is a partner to the all-Ukrainian Association for Credit Unions of Military and Police Officers, which embraces 25 credit unions in more than 20 regions of Ukraine and enjoys experience of funding its partners in case of need.
Factors constraining the credit rating
- Issuer`s detrimental performance during its entire period of operation coupled with
zero in company`s operating income, specifically its uncovered loss accounted for
UAH(-)296.5K as of Jul. 1, 2007. - The issue size of UAH400m exceeds significantly Issuer`s assets of UAH10.7m and equity of UAH11m.
- Meeting Issuer`s commitments on the obligation is fully contingent upon capacity of DVK CJSC, which is the company`s key partner, to meet its obligation towards the Issuer on the loan agreement dated April 15, 2007. The size of the loan is UAH300m, whereas the asset balance of DVK amounted to UAH8.7m only (as of Jan. 1, 2006).
Information on all credit ratings assigned in accordance with the Ukrainian national scale may be found in REUTERS, BLOOMBERG and FTN MONITOR information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
