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16.02.2007
Upcoming bond issue by «Interstroyservice» 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 upcoming issue of registered housing bonds (A, B series) by Sevastopol-based (Crimea) "Interstroyservice" LLC ("the Issuer" or "the company") for the amount of UAH 16m with the 3-year original maturity. The main company`s activity is selling metal-plastic windows, wholesales of construction materials in Crimea, and investment and construction. Today the company constructs 3 residential buildings in the cities of Sevastopol and Feodosiya. In the course of analysis the agency used Issuer`s financial statements for 2003-2005 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 in this case 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 investor has experience in construction projects, in fact a 5.3K sq.m. residential building in 6, Kesayeva str. in Sevastopol was set in operation in December 2006, the construction readiness of a residential building in 16A, Tolstogo str. in Sevastopol was 50% as of 1 Feb. 2007.
- The Issuer is involved in construction in the cities of Sevastopol and Feodosiya, where the prices and demand have been growing over the past few years;.
Factors constraining the credit rating
- The Issuer does not have experience in bonds` redemption.
- Issuer`s own capital amounts to UAH 0.27m as of 30 Sep. 2006, the planned issue size is UAH 16m.
- The bond issue is to be redeemed by providing premises in 6, Koshevogo str. in Sevastopol and in Industrialniy Lane in Feodosiya ("Mechta" district) which construction 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
