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28.09.2006
The planned bond’s issue of the LLC "BDK" Merkuriy" is assigned the uaBBB- (uaBBB minus) credit rating
The Credit Rating has today announced the assignment of the long-term uaBBB- credit rating to the planned issue of the registered passive (special) bonds (A-F series) of the Brovary-based LLC "Brovarskoy domostroitelniy kombinat "Merkuriy" for the amount of UAH 84 mln. with the circulation period of 2 years (A-E series) and of 1year (F series). The investment and construction is the main company's activity. Today six residential houses in the cities of Brovary, Kanev, Irpen are constructed by the LLC "BDK "Merkuriy".
The factors supporting the credit rating's level:
- the experience in implementation of residential construction projects, in fact, the Issuer has placed in operation 5 houses for the last 2 years with the total floor space of 33.1 thousand sq.m.;
- the funds obtained from the bond placement will be aimed at completion of construction of more 6 residential houses, the degree of preparedness of 5 is more than 50% and of the last one is 20%;
- the Issuer's productive capacity and structural subdivisions involved in the reinforced concrete and brick production, which allows the Issuer to supply the construction process on all stages.
The factors restricting the credit rating's level:
- the Issuer has no experience in bonds retirement by providing living quarters to their owners;
- the uncovered loss of UAH (-) 2864.6 thousand as for 30 June 2006, and insufficient equity capital which is only 0.4% of the value balance;
- volatility and disorder in the system of legislative control and taxation on operations, connected with the construction activity, in particular with the attraction of financing.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
