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06.03.2007
Bond issue by «OBIO» 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 issue of registered housing bonds (P series) by Kiev-based "OBIO" LLC ("the Issuer" or "the company") for the amount of UAH 60.4m with the 3-year original maturity. The main company`s activity is investment and construction. Today the company constructs a residential and office centre in Kiev`s Obolon district. In the course of analysis "Credit-Rating" used Issuer`s financial statements for 2004-2005 and 9M2006 as well as other inside information furnished by the company.
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 dependant upon favourable business, financial and economic conditions.
Factors maintaining the credit rating
- The Issuer has all permissions for construction a residential and office centre
in
5A, Mayorova str. in Kiev, which is to be financed by the funds raised form the bonds` placement. - The Issuer is involved in funding the residential and commercial construction in the city of Kiev, where 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 implementation of investment and construction projects, neither in bonds` redemption.
- The planned bond issue is to be redeemed by spots in parking of the residential and office centre with the zero current construction stage.
- Issuer`s equity is UAH (-)3.5m as of 30 Sep. 2006
- Issuer`s total liabilities of UAH 332.5m on 2 housing bond issues 16.3x 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
