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28.02.2007
Upcoming bond issue by «Investservice-2000» assigned uaB credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of uaB long-term credit rating to the upcoming issue of registered housing bonds (A series) by Kharkiv-based "Interservice-2000" LLC ("the Issuer" or "the company") for the amount of UAH 22.8m due on 29 Sep. 2007. The main company`s activity is investment and construction. In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 2004-2005 and 9M2006 as well as other 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.
Factors maintaining the credit rating
- The bond issue is to be redeemed by residential premises in the building in 7/9, Chernishevskogo str. in the city of Kharkiv, with the current construction readiness of 45%.
- The Issuer constructs a residential building in the city of Kharkiv, where the real estate prices 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 proprietary rights for construction of the building to be financed by the funds raised from the bonds` placement is bailed by the bank credit.
- Issuer`s negative equity of UAH (-)1.6m as of 30 Sep. 2006.
- Issuer`s authorized capital is UAH 20K, with the planned issue size being UAH 22.8m
- 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
