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12.12.2006
The bond issue by «Trest Zhitlobud-1» OJSC 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 the registered zero-coupon (housing) bonds (of D2 J2 series) by Kharkiv-based "Trest Zhitlobud-1" OJSC ("the Issuer" or "the company") for the amount of UAH 23.8m with the 1-year original maturity. The main company`s activity is construction. Today the company constructs a residential house in the city of Kharkiv. In the course of the rating analysis, the "Credit-Rating" agency used Issuer`s 2001-2005 and 1H 2006 financial reports as well as other inside information furnished by the company.
The uaBBB issue rating reflects 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
- Issuer`s experience in conducting construction works and in projects` implementation (the Issuer has set in operation over 200 thousand sq.m. of residential premises over the past 10 years).
- The Issuer owns production facilities and structural subdivisions for supplying the construction on almost all stages.
- The funds to be obtained from the bonds` placement will be aimed at construction of a residential house with a current readiness of 30%.
Factors constraining the credit rating
- The Issuer does not have experience in bonds` redemption.
- Issuer`s authorized stock of UAH 383.5 thousand, which is only 0.3% 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
