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19.01.2007
Upcoming bond issue by «Ukrsotsstroy» 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 coupon bonds (of G series) by Kiev-based "Ukrsotsstroy" LLC ("the Issuer" or "the company") for the amount of UAH 92.2m due on 12 Dec. 2015. The main company`s activity is investment and construction. Today the company constructs residential houses in the cities of Kirovograd, Feodosiya, Nikolayev and in the borough of Koktebel. In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 2005 and for 9 months 2006 as well as other inside information furnished by the company.
The uaCCC issue rating reflects a default possibility on the obligation wich 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
- Main Issuer`s shareholder is "Ukrsotsbank" JSCB (99% of the authorized fund), which is included into 1 st group of banks according to NBU`s (National Bank of Ukraine) classification. The bank may financially underpin the Issuer if needed, though the bank does not act as a guarantor of this issue.
Factors constraining the credit rating
- Negative Issuer`s own capital as of 30 Sep. 2006 (UAH (-)13 thousand), entailed by its detrimental activity.
- The size of the issue planned (UAH 92.2m) almost 3x exceeds the Issuer`s asset balance (UAH 36.98m) as of 30 Sep. 2006
- The Issuer is registered in June 2005, which prevents from tracing the company`s development dynamics for the overall bonds` original maturity (till 2016)
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
