print
23.04.2007
Upcoming bond issue by Scientific and Manufacturing centre TOR assigned uaBB credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBB long-term credit rating to the upcoming issue of registered discount bonds (A series) by Kiev-based Scientific and Manufacturing centre TOR LLC (Issuer or company) for the amount of UAH 20m with the 5-year original maturity. The main companys activity is investment and construction. Today the company constructs 3 office centres in the city of Kiev and a cottage village in Kiev oblast. In the course of analysis the agency used Issuers financial statements for 2002-2006 as well as other inside information furnished by the company.
Issues rated uaBB are the least affected by the risk of non-payment of the principal and interest within the speculative grade. The obligor, however, may be impaired to timely and in full meet its commitments on the obligation in the Ukrainian financial market environment in the event of adverse changes in business, financial and economic conditions. However, the possibility of non-payment is low in the near future.
Factors maintaining the credit rating
- The Issuer has been committed to architectural designing and construction since 1995. The past 6 years saw a number of office and residential buildings of total 70.2K sq.m. constructed by the Issuer, with the construction readiness of another object of 23.2K sq.m. being currently 90%.
- The Issuer has an order portfolio scheduled to 2010 year-end. Two office centres of 64.3K sq.m. total floor area situated in the citys centre, and a cottage village of 5.8K sq.m. are to be constructed. The market price of the order portfolio is USD 147.5m as of 1 Apr. 2006.
- The company is involved in real estate business of Kiev region with a great demand for residential and commercial premises.
Factors constraining the credit rating
- Issuers negative equity during 2002-2004 and 2006 (the equity amounted to UAH -2.9m as of 31 Dec. 2006) caused by Issuers detrimental performance till 2002 and in 2006.
- Dependency of Issuers performance upon size of projects and order portfolio, which are constrained by growing competition in construction market as well.
- The Issuers authorized stock has not been changed since the Issuers foundation, amounting to UAH 400, with the asset balance being UAH 83.9m 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
