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03.05.2007
Upcoming bond issue by Yurtal 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 coupon bonds (B series) by Odessa-based Yurtal LLC (Issuer` or company`) for the amount of UAH 50m with the 5-year original maturity. The main company`s activity is renting, selling and purchasing of commercial real estate and reconstruction and renovation of buildings. Today the company reconstructs office buildings in the city of Odessa. 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 company owns real estate of 5,277.6 sq.m total floor area (which balance sheet value as of Dec. 31, 2006 amounted to UAH 56.9m), with that providing with company with the stable income from renting.
- The Issuer is involved into commercial real estate business in the city of Odessa, where real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- Issuer`s negative equity of UAH -1.7m as of Dec. 31, 2006.
- Issuer`s significant debt burden: in fact, its debt, including the upcoming issue is to rise to UAH 152.8m.
- The 2006 EBITDA of UAH 7.5m was insufficient to cover the Issuer`s expenses of UAH 9.4m.
- 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
