print
01.03.2007
Upcoming bond issue by «Gradostroy» LLC assigned uaBB- (uaBB minus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBB- (uaBB minus) long-term credit rating to the upcoming issue of registered housing bonds (I series) by Kiev-based "Gradostroy" LLC ("the Issuer" or "the company") for the amount of UAH 12.6m with the 4-year original maturity. The main company`s activity is investment and construction. Today the company constructs residential buildings in the cities of Kiev, Chernihiv, Alushta and in the borough of Mikhailovka-Rubezhovka in Kiev Oblast. In the course of analysis the agency used Issuer`s financial statements for 2002-2005 and 9M2006 as well as other inside information furnished by the company.
Issues rated uaBB are the least affected by the risk of non-payment of the principal and interest within the speculative grade. The obligor, however, may be impaired to timely and in full meet its commitments on the obligation in the Ukrainian financial market environment in the event of adverse changes in business, financial and economic conditions. However, the possibility of non-payment is low in the near future. The "+" and "-" modifiers denote rating`s relative status within major categories.
Factors maintaining the credit rating
- Issuer has experience of financing investment and construction projects by bonds` placement and redemption, specifically the Issuer has redeemed 801 sq.m. for the amount of UAH 2.6m
- The Issuer as a customer has set in operation 2 residential buildings of 41.9K sq.m.
- The building, which apartments to be assigned to bonds` holders is situated in the borough of Mikhailivka-Rubezhovka (Kiev`s suburb), where the real estate prices have been growing over the past few years.
Factors constraining the credit rating
- Risks incurred under the projects` size, in fact the Issuer is planning to build 5 residential complexes of 142.5K sq.m.
- The bond issue is to be redeemed by the premises in the building being currently on preparatory stage of construction.
- Issuer`s consolidated liabilities as of 30 Sep. 2006 exceeded the asset balance by 6.7%, the equity amounted to UAH (-) 10.17m
- 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
