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15.01.2007
Upcoming bond issue by «Interfarm mobile mechanized column #32» OJSC assigned uaB+ (uaB plus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaB+ (uaB plus) long-term credit rating to the upcoming issue of registered zero-coupon (housing) bonds (of A series) by Sumy-based "Interfarm mobile mechanized column #32" OJSC ("the Issuer" or "the company") for the amount of UAH 48.5m with the 5-year original maturity. The investment and construction is the main company`s activity. Today the company constructs a residential district in the city of Sumy. 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 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. The "+" and "-" modifiers denote rating`s relative status within major categories.
Factors supporting the credit rating
- The Issuer as a general contractor since 1997 has built 22.5 thousand sq.m. with 20.4 thousand of them being residential premises.
- The Issuer constructs premises in the city of Sumy where real estate prices have been growing over the past few years.
Factors constraining the credit rating
- The company does not have experience as a customer in investment and construction projects and in bonds` redemption.
- The construction of the building to be financed by the funds obtained from the bonds` placement is currently on the initial stage.
- 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
