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13.02.2007
Bond issue by «Ekobud» LLC assigned uaB credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaB long-term credit rating to the issue of registered housing bonds (C series) by "Ekobud" LLC ("the Issuer" or "the company") for the amount of UAH 91.6m with the 3-year original maturity. The main company`s activity is designing and constructing residential buildings. Today the company constructs residential houses in the city of Kiev and in Kiev region. 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 reflects higher default possibility than of the uaBB rating, though 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.
Factors supporting the credit rating
- The Issuer as a general contractor has constructed 7 buildings, another 2 objects of 40.1K sq.m. being constructed by the Issuer as a customer is on final stage of construction (81% and 95% construction readiness).
- The Issuer is involved in construction of residential and commercial premises in the city of Kiev and Kiev region, 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 setting in operation buildings, neither in bonds` redemption.
- The construction of the object to be financed by the funds raised from the bonds` placement is currently on the initial stage.
- 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
