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20.03.2007
Upcoming bond issue by `Stroyresurs-Ekonomiya` LLC assigned uaB credit rating
`Credit-Rating`, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaB long-term credit rating to the upcoming issue of registered housing bonds (A series) by Kiev-based `Stroyresurs-Ekonomiya` LLC (`the Issuer` or `the company`) for the amount of UAH 6.2m with the 2-year original maturity. The main company`s activity is investment and construction. Today the company constructs a residential building in Kiev Oblast. 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 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 Issuer has experience of a customer and of a contractor general in investment and construction, specifically the 2.45K sq.m. building of the 1st stage of residential complex is being set in operation. The building is situated in 7, Tsentralnaya str., in the borough of Petrovskoye (Borispil district, Kiev oblast).
- The Issuer is involved in residential construction in Kiev region, 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 bonds` redemption.
- The planned issue size (UAH 6.2m) 3x exceeds the Issuer`s asset balance (UAH 2.1m) as of 30 Sep. 2006.
- The planned bond issue is to be redeemed by residential premises in the building of the 2nd stage of the mentioned above residential complex, with the current initial stage of construction.
- 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
