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20.09.2006
uaB- credit rating assigned to upcoming bond issue of PE "Arkada", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaB- credit rating to the registered interest-free (special purpose) bond issue (A series) by PC Arkada (Kharkiv region) in the amount of UAH 8.2 million with a circulation period till 30.06.2008. The companys main activity is wholesale trade of agricultural products and commodities and materials in Ukraine and abroad, and construction investment.
Factors supporting the credit rating's level:
- all licensing documents available for construction of health and recreation center to be financed with funds from the bond offering;
- Issuer is managing construction project of health and recreation center on the Southern coast of AR of Crimea, where demand and prices on real estate kept growing in the recent years;
- PC Arkada also manages wholesale trade of agricultural products which allows diversifying sources of income: in the 1st quarter of 2006 the net sale volume was UAH 9.6 million, gross profitability 22.5%.
Factors restricting the credit rating's level:
- lack of experience in managing construction projects of residential houses and bond redemption by providing bondholders with facilities;
- the Issuer invests only a part of total amount necessary for realization of the project which complicates control over its timely fulfillment;
- negative value of the owned capital which was UAH (-) 559.6 thousand as of 31.03.2006;
- 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)
