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06.11.2006
The forthcoming bond issue by the LLC "PKP "Notechs" assigned uaBB- (uaBB minus) credit rating
The independent "Credit-Rating" agency has today announced the assignment of the uaBB- (uaBB minus) long-term credit rating to the forthcoming issue of the registered zero-coupon (housing) bonds (A, B, C series) by the Sumy-based LLC "Manufacturing and Commercial Enterprise "Notechs" ("Notechs") for the amount of UAH 59.1MM with 6-year original maturity. The investment and construction is the main company's activity. Today "Notechs" constructs 2 residential houses in the city of Sumy. During the analysis "Credit-Rating" used Issuer's 2003-2005 and 1H 2006 financial reports as well as other inside information furnished by the company.
The debt liabilities rated uaBB are the LEAST AFFECTED BY THE RISK OF NON-PAYMENT of the principal or interest within speculative grade. The obligor, however, may be impaired to full and timely meet its commitments on the obligation in the Ukrainian financial market environment in the event of adverse changes in business, financial and economic conditions. However, the possibility of non-payment is low in the near future. "Minus" denotes rating's relative status within major categories.
Factors supporting the credit rating
- The Issuer has experience in implementation of investment and construction projects in the city of Sumy. A 5,417 sq.m. residential house is set in operation, the readiness of another 3000 sq.m. house is currently 80%.
- The Issuer conducts activity, connected with residential and commercial construction in the city of Sumy, where the real estate prices have been growing over the past few years.
- The Issuer owns production facilities for supplying the construction on almost all stages
Factors constraining the credit rating
- The Issuer does not have experience in redemption of zero-coupon (housing) bonds by providing premises to their owners
- The implementation of the construction project to be financed by the funds obtained from the housing bonds placement is currently on the initial stage
- Volatility in legislation and taxation on operations connected with construction and attraction 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
