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11.01.2007
Upcoming bond issue by «Ketam» LLC assigned uaB credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaB long-term credit rating to the upcoming issue of registered zero-coupon (housing) bonds (of A-D series) by Kiev-based "Ketam" LLC ("the Issuer" or "the company") for the amount of UAH10.8m with the original maturity of A and B bonds` series to 31st May 2006, of C and D series to 31st Oct. 2008. The investment and construction is the main company`s activity. Today the company constructs a residential and office building in the city of Rivne. In the course of analysis the "Credit-Rating" agency used Issuer`s financial reports for 2003-2005 and for 9 months of 2006 as well as other inside information furnished by the company.
The uaB issue rating reflects a higher default possibility than of the uaBB rating, though in this case the obligor`s capacity is adequate to pay its obligations in the Ukrainian financial market environment. This debt liability is more affected by the adverse changes in business, financial and economic conditions than debt liabilities with higher ratings. That may negatively affect the obligor`s capacity and willingness to fully and timely pay interest and principal on obligations.
Factors supporting the credit rating
- The Issuer as an investor has experience in construction of a residential building with the total floor area of 2.06 thousand sq.m.
- The Issuer is involved in financing the residential and commercial construction in the city of Rivne, 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 redemption of zero-coupon (housing) bonds.
- Construction of the building to be financed by the funds obtained from the bonds` placement is currently on the initial stage.
- The issue size 2.6x exceeds Issuer`s assets 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 at 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
