print
08.11.2006
The forthcoming bond issue by the LLC "Akvapark" assigned uaB credit rating
The independent "Credit-Rating" agency has today announced the assignment of the uaB long-term credit rating to the forthcoming issue of the registered zero-coupon (housing) bonds (C series) by the Kiev-based Limited Liability Company "Akvapark" ("Akvapark", "the Issuer", or "the company") for the amount of UAH 50MM with 1 1/2 -year original maturity. The investment and construction is the main company`s activity. Today "Akvapark" finances a construction of a residential and hotel complex in Shumskogo str. in Kiev. During the analysis "Credit-Rating" used Issuer`s 2001-2005 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 funds obtained from the bonds` placement to be aimed at construction of 2 residential houses of the 2nd stage of the Kiev-based "Akvapark" complex (the construction readiness of the 1st building is 51%, of the second is 45.2%), the building of the 1st stage is already set in operation.
- The dynamics of construction market development in Kiev is in line with the all-Ukrainian tendency of growth in the investment and construction business.
Factors constraining the credit rating
- The property rights for the complex constructed are pawned by the bank credit.
- The Issuer does not have experience 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
