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14.11.2006
The forthcoming bond issue by the LLC «Polex» assigned uaCCC credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine, has today announced the assignment of the uaCCC long-term credit rating to the forthcoming issue of the registered zero-coupon (housing) bonds (A-S series) by the Chernovtsy-based LLC "Polex" ("the company" or "the Issuer") for the amount of UAH 53.5m due 14 Jan. 2008. In the course of the rating procedure the "Credit-Rating" agency used Issuer's 2003-2005 and 1H 2006 financial reports as well as other inside information furnished by the company.
The uaCCC issue 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.
Factors restricting the credit rating
- The Issuer has at its disposal all permits necessary for construction of a residential house to be financed by the funds obtained from the bonds' placement.
- The development of the construction market in Chernovtsy is in line with the all-Ukrainian growth of activity in investment and construction business.
Factors constraining the credit rating
- The Issuer does not have experience in construction and in bonds' redemption.
- The construction of a residential house to be financed by the funds obtained from the bonds' placement is currently on the initial stage.
- The planned issue size over 53x exceeds the Issuer's balance value (the issue size is UAH 53.5m, the balance value is UAH 1.1m, the own capital UAH (-) 59.0 thousand).
- 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
