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01.02.2007
Upcoming bond issue by «Liko-Holding» LLC assigned uaBBB+ (uaBBB plus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of uaBBB+ (uaBBB plus) long-term credit rating to the upcoming issue of registered zero-coupon (housing) bonds (of M and N series) by Kiev-based "Liko-Holding" LLC ("the Issuer" or "the company") for the amount of UAH 55.7m with M series due on 10 May 2008, and N series due on 10 Nov. 2007. The main company`s activity is investment and construction. Today the company constructs "LIKO-GRAD" residential complex in the city of Kiev. In the course of analysis "Credit-Rating" used Issuer`s financial statements for 2001-2005 and 9M2006 as well as other inside information furnished by the company.
The uaBBB issue rating reflects adequate capacity of the obligor to timely and in full pay the given issue in the Ukrainian financial market environment, there is, though, a higher vulnerability to the effect of adverse changes in business, financial and economic conditions as compared to the debt liabilities with higher ratings. The "+" and "-" modifiers denote rating`s relative status within major categories.
Factors supporting the credit rating
- Issuer`s experience in construction funding by zero-coupon (housing) bond issuances, as well as in bonds` redemption, specifically the company has set in operation 14 residential buildings in Kiev with the total floor area of over 150K sq.m. with ca.8K sq.m. of them redeemed by bonds.
- The Issuer owns production facilities and structural subdivisions for supplying the construction process on almost all stages.
- Construction market development in the city of Kiev is in line with the all-Ukrainian tendency of growth in investment and construction business.
Factors constraining the credit rating
- Issuer`s authorized capital is UAH 20.5K which is 0.006% of the asset balance.
- Issuer`s detrimental activity according to 2003-2004 and 9M2006 totals.
- Necessity in restructurization for commitments on D series housing bonds issued 4,525 in amount (12.3% of D series) by exchange for to-be-issued bonds of N series.
- 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
