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09.02.2007
Bond issue by «Inex Real Estate» LLC 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 discount bonds (A series) by Kiev-based "Inex Real Estate" ("the Issuer" or "the company") for the amount of UAH 15m due on 31 Dec. 2016. The main company`s activity is providing services in real estate (selling, purchasing, renting on primary and secondary markets, mortgage, consulting etc.), and investment and construction. Today the company constructs 4 residential buildings in the city of Chernihiv. In the course of analysis "Credit-Rating" agency used Issuer`s financial statements for 2005 and 9M2006 as well as other inside information furnished by the company.
The uaCCC issue rating reflects a default possibility, which may be faced in the Ukrainian financial market environment. The timely and full payments on debt liabilities are substantially dependent upon favourable business, financial and economic conditions.
Factors supporting the credit rating
- The Issuer is associated member of "Inex Professional Group", which incorporates companies operating on timber processing market and on selling aquatechnics. Albeit the group`s companies are not guarantors of the given issue, the Issuer may rely on their financial support when needed.
- The company operates on real estate market in the city of Chernihiv, where real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- The Issuer has insignificant experience in financial and economic activity, since it was registered in November 2005.
- The planned issue size 2.3x exceeds the Issuer`s asset balance as of 30 Sep. 2006
- 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
