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20.10.2006
The credit rating of bonds issued by the LLC "Cherhigov plant of construction materials" upgraded to uaB+ (uaB plus)
Kiev (Credit-Rating) October 20, 2006 . The independent Credit-Rating agency has announced the upgrade in the uaB long-term credit rating to uaB+ (uaB plus) of the registered passive bonds (A series) issued by the Chernigov-based LLC "Chernigov plant of construction materials" for the amount of UAH 19.6 mln. with the 25 January 2007 maturity date. The main company's activities are production of construction materials (white and colour sand-lime bricks, porous aerated concrete) and investment and construction activity. To revise the rating, the Credit-Rating agency used full Issuers 2Q and 1H 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. The present 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.
During the upgrade procedure of the company's credit rating the following factor was taken into account: the 1H 2006 increase by UAH 13 mln. in volume of uncompleted construction of a building in 37/41, Bakinskaya str. (Kiev), which readiness is currently over 50%.
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
