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01.12.2006
The forthcoming bond issue by CJSPCC «Sevastopolzhilstroy» assigned uaBB+ (uaBB plus) credit rating
«Credit-Rating», a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBB+ (uaBB plus) long-term credit rating to the forthcoming issue of the registered zero-coupon (housing) bonds (A, B, C series) by Sevastopol-based (Autonomous Republic of Crimea) Closed Joint-Stock Project and Construction Company «Sevastopolzhilstroy» («the Issuer» or «the company») for the amount of UAH 13.8m with the 3-year original maturity. The investment and construction is the main company`s activity. Today the company constructs buildings in «Omega-2A» microdistrict in the city of Sevastopol. In the course of the rating procedure the «Credit-Rating» agency used Issuer`s 2001-2005 and 1H 2006 financial reports as well as other inside information furnished by the company.
Issues 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 an experience in implementation of investment and construction projects as a general contractor, having constructed 38.2 thousand sq.m. of residential premises since 2003 (with 14.2 thousand sq.m. of them being invested by the Issuer).
- The Issuer owns production facilities (incl. that for construction materials) for supplying the construction process on almost all stages.
- The Issuer is involved in construction of residential premises in the city of Sevastopol, where the real estate prices have been growing over the past few years.
Factors constraining the credit rating
- The Issuer does not have experience in zero-coupon (housing) bonds` redemption.
- The project to be financed by the funds obtained from the bonds` placement is currently on the initial stage.
- The size of the Issuer`s uncovered loss is UAH (-) 616.7 thousand as of 30 June 2006
- 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
