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02.03.2007
Upcoming bond issue by «Avtopromkhim» LLC assigned uaCCC credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaCCC long-term credit rating to the upcoming issue of registered housing bonds (I series) by Kiev Oblast-based "Avtopromkhim" LLC ("the Issuer" or "the company") for the amount of UAH 125m with the 5-year original maturity. The main company`s activity is investment and construction. Today the company constructs 2 residential buildings in the city of Kiev. 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 uaCCC issue rating reflects a default possibility, which may be faced on the obligation in the Ukrainian financial market environment. The timely and full payments on debt liabilities are substantially dependent upon favourable business, financial and economic conditions.
Factors maintaining the credit rating
- The Issuer implements 2 investment and construction projects in Kiev, with the current construction readiness of one of them situated in 80-82, Dmitrievskaya str. being 10%.
- The Issuer is involved in funding the residential construction in the city of Kiev, 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, neither in bonds` redemption.
- The construction of the residential complex in 2B, Olshanskaya str. Kiev, which apartments are to be assigned to bonds` holders, is currently on project`s development and arrangement stage.
- The planned issue size 16.5x exceeds Issuer`s equity 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 at 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
