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19.01.2007
Upcoming bond issue by Commercial and Scientific-manufacturing Enterprise «Academy of European Business» LLC assigned uaB- (uaB minus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaB- (uaB minus) long-term credit rating to the upcoming issue of registered zero-coupon (housing) bonds (of A series) by Kherson-based Commercial Scientific-manufacturing Enterprise "Academy of European Business" LLC ("the Issuer" or "the company") for the amount of UAH 30.5m with the 2 1/2-year original maturity. The main company`s activity is providing the consulting and information services, and investment and construction. Today the company constructs a multi-storeyed residential house in the city of Kherson. In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 2003-2005 and 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 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 general contractor of the construction to be financed by the funds obtained from the bonds` issuance is Project and construction firm "Khersonbud", which is the leading construction company in Kherson region having over 50-year experience in construction.
- Dynamics of construction market development in the city of Kherson is in line
with
the all-Ukrainian tendency of growth in investment and construction business.
Factors constraining the credit rating
- The Issuer does not have experience in residential construction 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
