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18.09.2006
uaCCC+ credit rating assigned to upcoming bond issue of "Ukrgas", 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, B series) by Ukrgaz Ltd (Kyiv) in the amount of UAH 382 million with a circulation period (A series) till 01.12.2007 and (B series) till 01.09.2009. The companys main activity is construction investment. Ukrgaz Ltd is currently managing construction of residential complex in Chayka, Kyiv region.
Factors supporting the credit rating's level:
- all licensing documents available for construction of the residential complex;
- the construction project to be financed through the special-purpose bond offering is about 20% completed;
- the Issuer is involved in the activity related to construction of accommodation and commercial facilities in Kyiv region, where the prices kept growing in the recent years.
Factors restricting the credit rating's level:
- lack of experience in realization of construction projects of residential houses and bond redemption by providing bondholders with facilities;
- risks due to large scale of the project (within three next years the company plans to put into operation 181 574.3 sq. m. of accommodation and commercial facilities; the scheduled issue volume is UAH 382.02 million; the total balance UAH 18.25 million);
- undetermined and unstable system of legal regulation and taxation of operations with construction and in particular fund-raising.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
