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20.11.2006
The LLC «Makrokap Development Ukraina» assigned uaBB credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBB long-term credit rating to the Kharkiv-based LLC "Makrokap Development Ukraina" ("the company"). The construction is the main company`s activity. Today the company constructs residential and commercial premises in the city of Kharkiv. In the course of analysis the "Credit-Rating" agency used company`s 2001-2005 and 1H 2006 financial reports as well as other inside information furnished by the company.
The uaBB issuer rating shows that its liabilities are the LEAST AFFECTED BY THE RISK OF NON-PAYMENT within the speculative grade. The issuer, however, may be impaired to full and timely meet its commitment 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
- Company`s experience in residential and commercial construction, in fact, the company has set in operation over the past few years 3 residential houses in Kharkiv with the total area of 56.9 thousand sq.m. and commercial premises of 3.1 thousand sq.m.
- Today the company implements 10 commercial and residential construction projects, with the readiness of 2 of them being 65-100%, of 5 of them 5-10%, 3 projects are currently under planning.
- The company owns production facilities and structural divisions for supplying the construction on almost all stages.
Factors constraining the credit rating
- The company`s negative own capital over 2001-2005 and 1H 2006.
- 2 of 4 construction projects were set in operation with over 1-year delay.
- Volatility in legislation and taxation on operations connected with construction and with 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
