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11.04.2007
Upcoming bond issue by «Disk» 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 hosing bonds (A and B series) by Odessa-based "Disk" LLC ("the Issuer" or "the company") for the amount of UAH 22.6m due 31 Jan. 2011. The main company`s activity after reorganization in 2005 has been investment and construction. Today the company constructs a 16-storeyed residential building with installed parking and other facilities in the city of Odessa. In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 2001-2006, as well as other inside information furnished by the company.
The uaCCC issue 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 planned bond issue is to be redeemed by apartments in 148/2, Schorsa str., Odessa, on all authorizing documents for initial construction works are obtained.
- The Issuer is involved in funding the residential construction in Odessa, 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 residential construction, neither in bonds` redemption.
- The planned issue is to be redeemed by premises in the residential building with the initial stage of construction.
- The planned issue size (UAH 22.6m) 17x exceeds Issuer`s asset balance (UAH 1.3m) as of 31 Dec. 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
