print
19.02.2007
Upcoming bond issue by «Vishnevyi Kvartal» LLC assigned uaB- (uaB minus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaB- (uaB minus) long-term credit rating to the upcoming issue of registered housing bonds (A series) by Kiev region-based "Vishnevyi Kvartal" LLC ("the Issuer" or "the company") for the amount of UAH 83.5m with the 3-year original maturity. The main company`s activity is investment and construction. Today the company constructs a residential building in Vyshneve borough in Kiev oblast. In the course of analysis the "Credit-Rating" 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 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 maintaining the credit rating
- The Issuer is incorporated into "ATM" group of companies, which provides services as engineer and general contractor in construction. Over 1997-2006 the group`s companies have constructed and reconstructed 17.2K sq.m. of premises, with 10.6K sq.m. of them being recreational facilities.
- The Issuer is a customer of residential building construction in the borough of Vishneve, in Kiev`s suburb, where demand for residential and non-residential premises is in line with that in Kiev.
Factors constraining the credit rating
- The Issuer does not have experience in residential construction, neither in bonds` redemption.
- The bond issue is to be redeemed by residential and non-residential premises in the building being currently on preparatory stage of construction.
- The issue size 76x 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
