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22.09.2006
uaB- credit rating assigned to upcoming bond issue of IG "Ratibor", 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 (B, C series) by Construction Group Ratibor Ltd (Dnipropetrovsk) in the amount of UAH 60 million with a circulation period till 15.12.2009. The companys main activity is construction investment. CG Ratibor is currently managing construction of Slavia complex in Dnipropetrovsk. In the rating analysis Credit-Rating agency used Issuers financial reports for 2005 and the first half of 2006 as well as other inside information provided by the company.
Credit-Rating agency also announced the upgrade of the long-term credit rating to the registered interest-free (special purpose) bond issue (A series) by CG Ratibor Ltd in the amount of UAH 16 million with a circulation period till 30.04.2008 from uaCCC to uaB.
Factors supporting the credit rating's level:
- Issuer is the actual center of the company group, having majority interests (over 70%) in the authorized fund of 9 companies with positive experience in construction and sales of real estate. Ratibor company group set into operation 3 residential houses with office facilities with total area of about 17.7 thousand sq. m.;
- funds from the bond offering are to be used in construction of the first stage of residential house with trade and commercial facilities and parking lot which is the second part of Slavia complex (construction of the first part of the complex is 85% complete);
- Issuer is involved in the activity related to construction of accommodation and commercial facilities in Dnipropetrovsk where the prices kept growing in the recent years;
- when upgrading rating to the bond issue (A series) the following was taken into consideration: active construction works at the first stage of multi-functional complex Slavia: house framework assembling was completed, interior and exterior finishing works and communication installation are managed.
Factors restricting the credit rating's level:
- lack of construction permit for the second stage of Slavia complex which is to be financed through the bond offering (B series);
- the scheduled issue volume (UAH 60 million) is almost twice larger than the Issuers total balance;
- undetermined and unstable system of legal regulation and taxation of operations with construction and in particular fundraising.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
