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06.12.2006
The forthcoming bond issues by «Proizvodstvenniy Vektor» LLC assigned uaCCC- (uaCCC minus)
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaCCC- (uaCCC minus) long-term credit rating to the forthcoming issues of the registered zero-coupon (housing) bonds by Kiev-based "Proizvodstvenniy Vektor" LLC ("the Issuer" or "the company") of G series for the amount of UAH 675.2m, and of H series for the amount of UAH 34.7m with the 6 1/2 -year original maturity. The investment and construction is the main company`s activity. In the course of analysis, the "Credit-Rating" agency used Issuer`s financial reports for 2002-2005 and for 9 months of 2006 as well as other inside information furnished by the company.
The uaCCC issue rating denotes that a DEFAULT POSSIBILITY on the obligation may be faced in the Ukrainian financial market environment. The timely and full payments on debt liabilities are substantially dependent upon favourable business, financial and economic conditions. "Minus" denotes rating`s relative status within major categories.
Factors supporting the credit rating
- The Issuer organizes and finances residential construction in the city of Kiev, where the real estate prices have been growing over the past 5 years.
- Availability of almost all permitting documentation necessary for construction of the "Pokrovskiy Posad" office and residential complex, which is to be funded by bond issuances.
Factors constraining the credit rating
- The Issuer does not have experience in residential construction and in bonds` redemption.
- The construction of the "Pokrovskiy Posad" office and residential complex, to be financed by the funds obtained form the bonds` placement, is currently on the preparatory stage.
- 2x increase in commitments on zero-coupon (housing) bonds, including 9 previous and 2 planned bond issues (up to UAH 1,452.4m)
- The negative equity capital amounting to UAH (-) 14.9m as of 30 Sep. 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
