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10.01.2007
Upcoming bond issue by «Pridneprovskaya energy company» LLC assigned uaCCC credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaCCC long-term credit rating to the upcoming issue of registered zero-coupon (housing) bonds (of A series) by Dnepropetrovsk-based "Pridneprovskaya energy company" LLC ("the Issuer" or "the company") for the amount of UAH 16m with the 4-year original maturity. Investment and construction is the main company`s activity. Today the company constructs a residential building in the city of Dnepropetrovsk. In the course of analysis the "Credit-Rating" agency used Issuer`s financial reports for 2003 9 months of 2006 as well as other inside information furnished by the company.
The uaCCC issue rating reflects 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.
Factors supporting the credit rating
- Issuer possesses all permitting documents for conducting the construction works.
- Dynamics of construction market development in the city of Dnepropetrovsk is in line with the national tendency of growing business activity in investment and construction.
Factors constraining the credit rating
- Issuer does not have experience in construction of residential buildings, neither in bonds` redemption.
- The planned bond issue is to be redeemed by premises of the building with the current initial construction stage.
- The planned issue size 11x exceeds Issuer`s asset balance as of 30 Sep. 2006 (the size of planned issue amounts to UAH 16m, the assets balance is UAH 1.4m)
- 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
