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08.12.2006
The bond issue by «Construction and commercial firm «Granit» assigned uaBBB credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBBB long-term credit rating to the issue of registered zero-coupon (housing) bonds (of A series) by Kiev-based "Construction and commercial firm "Granit" LLC ("the Issuer" or " the company") for the amount of UAH 66.989m with the 2-year original maturity. The main company`s activities are construction and selling of construction materials. In the course of the rating procedure, the "Credit-Rating" agency used Issuer`s 2002-2005 and 1H 2006 financial reports as well as other inside information furnished by the company.
The uaBBB exhibits ADEQUATE CAPACITY of an obligor to timely and in full pay the given debt liability 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 the debt liabilities with higher ratings.
Factors supporting the credit rating
- The Issuer has experience in implementation of investment and construction projects as a general contractor and co-investor, specifically the Issuer has constructed 6 residential houses of 69.2 thousand sq.m. total area in the city of Kiev over the past 5 years.
- The funds obtained from the bonds` placement will be aimed at completing the construction of a residential house with a current readiness of over 30%.
- The Issuer owns production facilities and structural subdivisions for supplying the construction on almost all stages.
- The Issuer is involved in residential and commercial construction in the city of Kiev, 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 Issuer`s authorized stock is UAH 34.4 thousand, which amounts to only 0.02% of the asset balance;
- 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
