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14.05.2007
Credit rating assigned to bond issue by Kharkovzhilstroy-1 upgraded to uaB
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today
upgraded to uaB from uaCCC the long term credit rating assigned to bond
issue (F-L series) by Kharkiv-based Kharkovzhilstroy-1 LLC (`Issuer` or `company`) for
the amount of UAH 30.3m due Jan. 1, 2009. The main company`s activity is investment and
construction. Today the company constructs 2 residential buildings in the city of
Kharkiv. To revise the rating
Credit-Rating used Issuer`s financial statements for 4Q06 and 2006 full year as well as
other inside information furnished by the company.
The uaB issue rating reflects higher default possibility than of the uaBB rating, though in this case the obligor`s capacity is adequate to pay its obligations in the Ukrainian financial market environment. This debt liability is more affected by the adverse changes in business, financial and economic conditions than debt liabilities with higher ratings. That may negatively affect the obligor`s capacity and willingness to fully and timely pay interest and principal on obligations.
In the course of the rating revision procedure Credit-Rating took into account Issuer`s experience in construction financing by A-E series bond issuance and its redemption. Moreover the construction readiness of the building in 25, Rimarskaya str. to be funded by the F-L bond issue is 55% as of Dec. 31, 2006.
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
