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24.01.2007
Upcoming bond issue by «Inter-Bekon» 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 (A and B series) by Ternopil oblast-based "Inter-Bekon" LLC ("the Issuer" or "the company") for the amount of UAH 25.1m with the 4-year original maturity. The main company`s activities are fattening and selling of pigs, and investment and construction activity. In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 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 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
- Funds obtained from the housing bonds` placement are to be aimed at construction of a residential building, with the works funded by 15% as of October-beginning 2006.
- The Issuer is involved in construction of residential and commercial premises in the city of Ternopil, 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 residential construction, neither in bonds` redemption.
- The issue size planned (UAH 25.1m) 5x exceeds the company`s asset balance (UAH 5.43m).
- 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
