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23.02.2007
Bond issue by «Pravilnaya Kompaniya» LLC assigned uaCCC+ (uaCCC plus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaCCC+ (uaCCC plus) long-term credit rating to the issue of registered housing bonds (A-G series) by Dnepropetrovsk-based "Pravilnaya Kompaniya" LLC ("the Issuer" or "the company") for the amount of UAH 66.5m due on 3 Aug. 2009. The main company`s activity is investment and construction. Today the company finances the construction of "Novaya Pobeda" residential complex in Dnepropetrovsk. In the course of analysis "Credit-Rating" agency used Issuer`s financial statements for 2004-2005 and 9M2006 as well as other inside information.
The uaCCC long-term credit 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. The "+" and "-" modifiers denote rating`s relative status within major categories.
Factors maintaining the credit rating
- Availability of all necessary permitting documentation for construction of the 1st stage of the residential complex to be financed by the funds raised from the bonds` placement.
- The Issuer has proprietary rights for a plot of 0.7284 hectare for construction of the 1st stage of the residential complex.
- The Issuer is involved in financing the residential and commercial construction in the city of Dnepropetrovsk, where the real estate process and demand have been growing over the past few years.
Factors constraining the credit rating
- The Issuer does not have experience in investment and construction projects, neither in bonds` redemption.
- The bond issue is to be redeemed by residential and commercial premises in the building being currently on the preparatory stage of construction.
- The planned issue size almost 14x exceeds Issuer`s assets 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
