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26.04.2007
Upcoming bond issue by BnC 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 Kiev-based BnC LLC (Issuer` or company`) for the amount of UAH 50m with the 5-year original maturity. The main company`s activity is consulting on commercial and management issues. Today the company plans to operate on real estate market of the city of Kiev and of Kiev oblast. In the course of analysis Credit-Rating used Issuer`s financial statements for 2003-2006 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 Issuer is incorporated with the Business Congress corporation, which companies are leaders in investment and financial consulting business.
Factors constraining the credit rating
- Issuer`s information non-transparency and vague development strategy.
- Issuer`s activity within the Business Congress corporation impose risks of cash redistribution between the corporation`s companies without taking into account Issuer`s interests. That makes the Issuer vulnerable to risks, which may incur under corporation`s financial and economic performance.
- The planned issue size (UAH 50m) 6x exceeds Issuer`s asset balance (UAH 8.3m) as of Dec.31, 2006 and 13x exceeds the Issuer`s equity (UAH 3.9m)
- Company`s dropped net sales over the past 3 years (to UAH 0.5m from UAH 8.9m) and its detrimental performance according to 2005-2006 totals.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found at 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
