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03.11.2006
The forthcoming bond issue by the LLC "Zhilstroy-Invest-K" assigned uaCCC credit rating
The independent "Credit-Rating" agency has today announced the assignment of the uaCCC long-term credit rating to the forthcoming issue of the registered zero-coupon (housing) bonds (A series) by the Odessa-based LLC "Zhilstroy-Invest-K" (ZIK) for the amount of UAH 70.7 MM with the 2-year original maturity. The investment and construction is the main company's activity. Today "ZIK" constructs a residential complex in the city of Odessa. To assign a rating, "Credit-Rating" used Issuer's 2005 and 1H 2006 financial reports as well as other inside information, furnished by the company.
The uaCCC issue credit rating reflects a DEFAULT POSSIBILITY on the present commitment in the Ukrainian financial market environment. The timely and full payments of liabilities are substantially dependent on favourable business, financial and economic conditions.
Factors supporting the credit rating
- The Issuer's partner the LLC "Zilstroy-invest" (which owns 0.5% of the Issuer's statutory capital) has an experience in implementation of investment and construction projects (a 8,910 sq.m. residential house is built and being set in operation by the company as a customer)
- Availability of almost all permitting documents for construction (excluding the permission for construction to be granted after removing the installations on the construction site)
- The construction market development in Odessa is in line with the all-Ukrainian tendency of growth in business activity in investment and construction sphere
Factors constraining the credit rating
- The Issuer does not have experience in construction of residential houses, and in bonds' retirement
- The Issuer's partner the LLC "Zhilstroy-invest" has not redeemed (as of 24 Oct. 2006) the zero-coupon (housing) bonds by providing premises to their owners (the maturity is 30 Dec. 2005)
- The implementation of construction project to be financed by the funds obtained from the bonds placement is currently on the initial stage
- Volatility in legislation and taxation connected with construction activity and with attraction of funding
Information on all 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
