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13.11.2006
The forthcoming bond issue by the «Intergal-Bud» (subsidiary of the LLC «Firma «Intergal») assigned uaBB+ (uaBB plus) credit rating
The independent "Credit-Rating" agency has today announced the assignment of the uaBB+ (uaBB plus) long-term credit rating to the forthcoming issue of the registered discount bonds (A series) by the "Intergal-Bud" ("Intergal", "the company" or "the Issuer") which is a subsidiary of the Lviv-based LLC "Firma Intergal" for the amount of UAH 80m with the 9-year original maturity. The investment and construction is the main company`s activity. Today the company implements 21 investment and construction projects in the cities of Lviv, Uzhgorod, Mukachevo, Chernivtsy, Rivne. In the course of the rating procedure the "Credit-Rating" agency used Issuer`s financial reports for 2001-2005 and for 9 months of 2006, as well as other inside information furnished by the company.
The debt liabilities rated uaBB are the LEAST AFFECTED BY THE RISK OF NONPAYMENT of the principal and interest within the speculative grade. The obligor, however, may be impaired to timely and in full 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 nonpayment is low in the near future.
Factors supporting the credit rating
- The Issuer has a customer and investor`s experience in implementation of projects. The company has built 6 residential houses and a 24,900 sq.m. office building in the city of Lviv. Another more 6 houses are built and being set in operation.
- The Issuer is involved in construction of residential and commercial premises in Lviv and other big cities of western Ukraine, where the construction market development is in line with the all-Ukrainian growth of activity in construction business.
Factors constraining the credit rating
- Issuer`s detrimental activity in 2003-2005 and 9 months of 2006, in fact the size of uncovered loss amounted to (-) UAH 2.2m as of 30 Sep.2006
- Risks incurred by the size of projects, in fact the Issuer`s planned projects for 3 years amount to 130,000 sq.m. of residential premises, which over 2x exceeds the overall area of the houses built earlier.
- 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 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
