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10.11.2006
The forthcoming bond issue by the LLC "Oblbudinvest" assigned uaCCC+ (uaCCC plus) credit rating
The independent "Credit-Rating" agency has today announced the assignment of the uaCCC+ (uaCCC plus) long-term credit rating to the forthcoming issue of the registered discount bonds (A series) by the Irpen`-based (Kiev oblast) Limited Liability Company "Oblbudinvest" ("Oblbudinvest", "the Issuer" or "the company") for the amount of UAH 40MM with the 10-year original maturity. The investment and construction is the main company`s activity. Today "Oblbudinvest" constructs a residential complex in the borough of Irpen` and a residential house in the borough of Kotsyubinskoe (Kiev Oblast). In the course of analysis, "Credit-Rating" used Issuer`s 2003-2005 and 1H 2006 financial reports as well as other inside information furnished by the company.
The uaCCC debt liability rating reflects a DEFAULT POSSIBILITY on the obligation in the Ukrainian financial market environment. The timely and full payments on debt liabilities are substantially dependent upon favourable business, financial and economic conditions. "Plus" denotes rating`s relative status within major categories.
Factors supporting the credit rating
- The Issuer is involved in residential construction in Kiev Oblast, where the real estate prices have been growing over the past few years.
- The Issuer currently implements 2 investment and construction projects funded by ca. UAH 17MM (as of 30 Jun. 2006).
Factors constraining the credit rating
- The issue size 2.3x exceeds the Issuer`s balance value.
- The company does not have experience in implementation of construction projects.
- The Issuer has been involved in the investment and construction activity only over the past 2 years, which complicates the forecasting of the company`s development for the original maturity and redemption term (to 2016).
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
