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08.11.2006
The forthcoming bond issue by the LLC "Chernigov-Prospect" assigned uaB- (uaB minus) credit rating
The independent "Credit-Rating" agency has today announced the assignment of the uaB- (uaB minus) long-term credit rating to the forthcoming issue of the registered zero-coupon (housing) bonds (A, B series) by the Chernigov-based LLC "Chernigov-Prospect" ("Chernigov-Prospect" or "the Issuer", or "the company") for the amount of UAH 16.5MM with 1 1/2 -year original maturity. The investment and construction is the main company`s activity. Today "Chernigov-Prospect" invests into the construction of 9-floor residential house in the city of Chernigov. During the analysis "Credit-Rating" used Issuer`s 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 its obligations 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. "Minus" denotes rating`s relative status within major categories.
Factors supporting the credit rating
- The Issuer is a general investor of construction of a residential house in the Chernigov city centre, which will be financed by the funds obtained from the bonds` placement. The investments` size and the construction readiness is currently 25%.
- The Issuer is involved in construction of residential and commercial premises in the city of Chernigov, where the real estate prices have been growing over the past few years.
Factors constraining the credit rating
- The Issuer does not have experience in residential construction and in bonds` redemption.
- 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 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
