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09.11.2006
The forthcoming bond issue by the LLC "Office centre "Vysoka Vezha" 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-E series) by the Kiev-based Limited Liability Company "Office centre "Vysoka Vezha" ("Office centre "Vysoka Vezha", "the Issuer" or "the company") for the amount of UAH 20.7MM with the original maturity of 1/2 year (A series), 1 year (B, C series), 1 1/2 year (D, E series). The investment and construction is the main company's activity. Today "Office centre "Vysoka Vezha" constructs 5 residential houses in the city of Rovno. During the analysis "Credit-Rating" used Issuer's 2004-2005 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.
Factors supporting the credit rating
- The Issuer is a customer and investor of construction of 5 five-floor residential houses in the city of Rovno. The construction will be financed by the funds obtained from the bonds' placement. The construction readiness of 2 houses is currently 39%.
- The Issuer is involved in funding of residential construction in the city of Rovno, where the real estate prices and demand have been growing over the past 5 years.
Factors constraining the credit rating
- The Issuer does not have experience in construction of residential houses 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 may 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
