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19.10.2006
The planned bond issue of the LLC "Darnitsa Plaza" assigned uaB+ (uaB plus) credit rating
Kiev (Credit Rating), October 19, 2006. The independent "Credit Rating" agency has today announced the assignment of the uaB+ (uaB plus) credit rating to the planned issue of the registered passive bonds (A series) of the Kiev-based LLC “Darnitsa-Plaza” for the amount of UAH 8 mln. with the 10 month maturity term. The investment and construction is the main company’s activity. Today the LLC "Darnitsa-Plaza" finances and reconstructs the uncompleted construction of a Kiev-based TV and radio company’s broadcast television complex with offices and in-built premises of a canteen and shop. During the analysis the "Credit Rating" agency used full Issuer’s 2004-2005 and 1Q 2006 financial reports, as well as other inside information, furnished by the company.
The uaB debt liability rating reflects a higher default possibility than of the uaBB rating, though in this case the obligor’s capacity is adequate to pay it in the Ukrainian financial market environment. This debt liability is more affected by the adverse changes in business, financial and economic conditions than debt liabilities with higher ratings. That may negatively affect the obligor’s capacity and willingness to fully and timely pay interest and principal on obligations. The ‘plus’ denotes the rating’s relative status within major categories.
Factors supporting the credit rating level
- The Issuer conducts activity, connected with organizing and financing of commercial premises construction in the city of Kiev, the prices for which have been growing over the past 5 years.
- The LLC "Darnitsa Plaza" is an investor of construction and reconstruction of the object with 65% readiness.
Factors restricting the credit rating level
- The Issuer does not have experience in construction and selling of commercial premises, and in funds’ attraction for the construction financing.
- 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.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale can also be found in the REUTERS and BLOOMBERG information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
