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05.02.2007
Upcoming bond issue by «Makrokap Development Ukraine» LLC assigned uaBB credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBB long-term credit rating to the upcoming issue of registered zero-coupon (housing) bonds (of A and B series) by Kharkiv-based "Makrokap Development Ukraine" LLC ("the company" or "the Issuer") for the amount of UAH 13.3m with the original maturity of A series 1 1/2-years, of B series 2 years. The main company`s activity is investment and construction. Today the company constructs residential and non-residential premises in the city of Kharkiv. In the course of analysis "Credit-Rating" agency used Issuer`s financial statements for 2001-2005 and 9M2006 as well as other inside information furnished by the company.
Issues rated uaBB are the least affected by the risk of non-payment of the principal and interest within the speculative grade. The obligor, however, may be impaired to timely and in full meet its commitments on the obligation in the Ukrainian financial market environment in the event of adverse changes in business, financial and economic conditions. However, the possibility of nonpayment is low in the near future.
Factors supporting the credit rating
- The Issuer has experience in construction of residential and commercial premises, specifically the company has set in operation 3 residential buildings of 56.9K sq.m. total floor area in the city of Kharkiv and commercial premises of 3.1K sq.m. over the past few years.
- The Issuer owns production facilities and structural divisions for supplying construction on almost all stages.
- The construction objects to be financed by the funds raised from the bonds` placement are situated in the city of Kharkiv, 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 redemption of zero-coupon (housing) bonds.
- Company`s negative own capital over 2001-2005 and 1H2006.
- 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
