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29.01.2007
Bond issue by «Architectural and construction company «Snaga» PE 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 issue of registered zero-coupon (housing) bonds (of B-E series) by Kiev-based "Architectural and construction company "Snaga" Private Enterprise ("the Issuer" or "the company") for the amount of UAH 26.2m with the 4-year original maturity. The main company`s activity is investment and construction. Today the company constructs a cottage village "Prolysok" in Kiev oblast. In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 2003-2005 and 9M2006 as well as other inside information furnished by the company.
The uaCCC issue rating exhibits a default possibility which may be faced in the Ukrainian financial market environment. The timely and full payments on debt liabilities are substantially dependant upon favourable business, financial and economic conditions.
Factors supporting the credit rating
- Funds raised by the bonds` placement will be aimed at construction of 1 st stage of a cottage village in the borough of Plyuty (Obukhiv district, Kiev oblast) with its ongoing construction readiness being 70%.
Factors constraining the credit rating
- The land site of the 1st stage village`s construction is pawned by the bank credit.
- The Issuer is unlikely to meet its commitments on the first bond issue (of A series), which are to be redeemed by providing cottages of 1 st stage to their owners (the deadline of bonds` redemption is 1st Jan. 2007, the planned date of cottages` setting in operation is 2Q 2007)
- 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
