uaB credit rating assigned to upcoming bond issue of Incompany, Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaB credit rating to the scheduled registered interest-free (special-purpose) bond issue (A, B series) by CJSC Incomapny (Zaporizhya) in the amount of UAH 7.6 million with a circulation period of 3 years. The companys main activity is construction. CJSC Incompany is currently completing and reconstructing two residential houses in Zaporizhya.
Factors supporting the credit rating's level:
- the bond issue is to be used by the Issuer to finance completion of unfinished facility and reconstruction of dormitory which are 20% and 68% complete respectively;
- growing demand for apartments in new buildings in Zaporizhya, and the tendency to raise their cost.
Factors restricting the credit rating's level:
- lack of experience in realization of accommodation construction and reconstruction projects or in bond redemption by providing bondholders with facilities;
- negative value of the equity which was UAH (-) 2.2 thousand as of 30.06.2006;
- undetermined and unstable system of legal regulation and taxation of operations with construction and in particular fundraising.
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