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18.04.2007
Upcoming bond issue by PRIMADOM 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 discount bonds (A series) by Odessa-based PRIMADOM LLC (the Issuer` or the company`) for the amount of UAH 60m with the 9-year original maturity. The main company`s activity is selling and renting of owned real estate, as well as investment and construction. Today the company constructs a residential building in the city of Odessa. In the course of analysis Credit-Rating used Issuer`s financial statements for 2005-2006, 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
- Issuer`s profitable performance in 2005-2006, specifically the undistributed profit amounted to UAH 230.3K as of 31 Dec. 2006.
- The Issuer operates in real estate market of Odessa, where prices and demand have been growing over the past few years.
Factors constraining the credit rating
- The issue size (UAH 60m) exceeds Issuer`s asset balance (UAH 2.8m) and net revenues (UAH 3.5m) 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, BLOOMBERG and FTN MONITOR information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
