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25.10.2006
The bond issue of the LLC "Elixim" assigned uaCCC credit rating.
Kiev (Credit-Rating) October 25, 2006. The independent "Credit-Rating" agency has today announced the assignment of the uaCCC long-term credit rating to the registered passive (discount) bonds, issued by the Kiev-based LLC “Elixim” for the amount of UAH 63 mln. with the 10-year maturity. The investment and construction is the main company’s activity. Today the LLC "Elixim" carries out the adjustment procedure concerning construction of an office centre in the city of Kiev. During the analysis the “Credit-Rating” agency used Issuer’s full 2002-2005 and 1H 2006 financial reports, as well as other inside information furnished by the company.
The uaCCC issue rating denotes the POSSIBILITY OF DEFAULT on the present issue in the Ukrainian financial market environment. The timely and full redemption of commitments are substantially dependant upon favourable business, financial and economic conditions.
Factors supporting the credit rating level
- The Issuer conducts its activity on the construction market of the city of Kiev,
where the real estate prices have been growing over the past 5 years.
- The LLC "Exilim" as an investor has experience in implementation of a project aimed at construction of residential building with the total floor area of 6.5 thousand sq.m. set in operation in 2005.
Factors restricting the credit rating level
- The issue size exceeds significantly the Issuer’s UAH 500 thousand statutory
capital.
- The negative index of the equity capital, in fact (-) UAH 3.4 mln. as of 30 June
2006; the uncovered loss for the period analyzed accounted for UAH 3.9 mln.
- Volatility and disorder in the system of legislative control and taxation on operations connected with the construction activity, and, in particular, with attracting of funding
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
