print
27.10.2006
The forthcoming bond issues of the LLC «Proizvodstvenniy Vektor» assigned uaCCC- (uaCCC minus) credit rating
The independent "Credit-Rating" agency has today announced the assignment of the uaCCC- (uaCCC minus) credit rating to the forthcoming issues of the registered passive bonds by the Kiev-based LLC "Proizvodstveniy Vektor", namely (K series) for the amount of UAH 19.8 mln. and (L series) for the amount of UAH 230 mln. with 2 Jul. 2011 maturity date. The main company's activity is investment and construction. Today the LLC "Proizvodstvenniy Vektor" finances the construction of 2 office-residential complexes "Pokrovskiy posad" and "Izumrud"in the city of Kiev. During the analysis the "Credit-Rating" agency used Issuer's 2002-2005 and 1H 2006 financial reports, as well as other inside information furnished by the company.
The uaCCC issue rating reflects a DEFAULT POSSIBILITY on the present commitment in the Ukrainian financial market environment. The timely and full payments of commitments are substantially dependent on favourable business, financial and economic conditions. The "minus" denotes rating's relative status within major categories.
Factors supporting the credit rating
- The Issuer conducts the activity connected with organizing and funding of residential construction in the city of Kiev, where the real estate prices have been growing over the past 5 years.
- The availability of almost all permitting documentation for construction of the office-residential complex (excluding the permission for conduction of construction works), which will be financed by the funds obtained from the bonds' placement.
Factors constraining the credit rating
- The Issuer does not have experience in implementation of investment and construction projects and in bonds' retirement by providing premises to their owners;
- The office-residential complex construction, which will be funded at the expense of bonds' placement, is currently on preparatory stage (the commencement of construction is planned for 4Q 2006).
- Increase in obligations on passive (special) bonds, taking into account 7 previous issues and 2 planned issues, in fact up to UAH 742.5 mln.
- The negative index of equity capital, namely UAH (-) 8.6 mln. as of 30 Jun. 2006
- Volatility in legislation and taxation on operations connected with the construction activity, and in attracting of funding.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale can 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
