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20.11.2006
The forthcoming bond issue by the LLC «Financial and construction centre «Sozidatel» assigned uaBBB- (uaBBB minus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine, has today announced the assignment of the uaBBB- (uaBBB minus) long-term credit rating to the forthcoming issue of the registered zero-coupon (housing) bonds (H series) by the Dnepropetrovsk-based LLC "Financial and construction centre "Sozidatel" ("Sozidatel", "the Issuer" or "the company") for the amount of UAH 24.5m with the 2 1/2 - year original maturity. The investment and construction is the main company`s activity. Today "Sozidatel" constructs 7 residential houses in the city of Dnepropetrovsk and 1 in the city of Krivoy Rog. In the course of analysis, the "Credit-Rating" agency used Issuer`s 2005 and 1H 2006 financial reports as well as other inside information furnished by the company.
The uaBBB issue rating reflects Issuer`s ADEQUATE CAPACITY to meet its commitments on the obligation in the Ukrainian financial market environment, there is, though, a higher vulnerability to the effect of adverse changes in business, financial and economic conditions as compared to issues with higher ratings. "Minus" denotes rating`s relative status within major categories.
Factors supporting the credit rating
- The company is an investor of construction of 7 residential houses, whereas the customer and contractor is CJSC "NPO "Sozidatel", which is the leading company on the construction market in Dnepropetrovsk, having set in operation ca. 250 thousand sq.m.
- The Issuer is involved in funding of residential construction in Dnepropetrovsk, where the real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- "Sozidatel" does not have experience in implementation of investment and construction projects and in bonds` redemption.
- The Issuer`s total dependency on the CJSC "NPO "Sozidatel", with the risks being common for both companies.
- 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
