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06.02.2007
Upcoming bond issue by «Company «Revers» LLC assigned uaB+ (uaB plus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaB+ (uaB plus) long-term credit rating to the upcoming issue of registered housing bonds (A series) by Kiev-based "Company "Revers" ("the Issuer" or "the company") LLC for the amount of UAH 30.4m with the 5-year original maturity. The main company`s activity is trading of aviation equipment and of aircrafts, as well as technical service of different aircrafts. Likewise, the company is involved in investment and construction. Today the company constructs a residential house in the city of Kiev. 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.
The uaB issue rating exhibits higher default possibility than of the uaBB rating, though in this case 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
- The Issuer as an investor has experience in reconstruction of buildings, specifically it has reconstructed 7.25K sq.m. with 3.56K sq.m. of them Issuer reconstructed as a customer.
- Funds raised form the bonds` placement is to be aimed at construction of a residential house in the city of Kiev with the current construction readiness being ca. 15%.
- The Issuer is also involved in selling and servicing the aircrafts, which allows the company to diversify revenue sources, specifically 2005 saw UAH 4.2m net profit gained from the mentioned activity.
Factors constraining the credit rating
- The Issuer does not have experience in residential construction, neither in bonds` redemption.
- The issue size planned 8.5x exceeds the Issuer`s assets.
- 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
