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23.10.2006
The bond issue of the LLC "Zhilyo Kievlyanam" assigned uaB credit rating
The independent «Credit-Rating» agency has today announced the assignment of the uaB long-term credit rating to the planned issue of the registered passive bonds (D series) by the Kiev-based LLC «Zhilyo Kievlyanam» for the amount of UAH 100 mln. with the 1 Jan. 2010 maturity date. The investment and construction is the main company’s activity. Today the LLC «Zhilyo Kievlyanam» conducts a construction of the «Yuzhniye Vrata» residential complex, situated in the Darnitsa district of the city of Kiev. During the analysis, the «Credit Rating» agency used full Issuer’s 2002-2005 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. 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.
Factors supporting the credit rating level
- The LLC «Zhilyo Kievlyanam» is the customer and investor of the construction of the «Yuzhnie Vrata» residential complex, which will be funded by the means obtained from bonds’ placement. The readiness level of the complex is currently over 31%.
- The Issuer conducts the activity connected with the construction of residential and commercial premises in the city of Kiev, the prices for which have been growing over the past 5 years.
Factors restricting the credit rating level
- The Issuer does not have experience in the investment and construction projects’ implementation and in bonds’ retirement by providing premises to their owners.
- The negative index of the equity capital, namely UAH (-) 7.89 mln. as of 30 June
2006
Volatility and disorder in the system of legislative control and taxation on operations connected with construction activity, and, in particular, with the attracting of funding.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale can be also 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
