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17.05.2007
Bond issue by Zhitloprombud 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 issue of registered housing bonds (A-E series) by Odessa-based Zhitloprombud LLC (`Issuer` or `company`) for the amount of UAH129.9m due Aug. 31, 2010. The main company`s activity is investment and construction. Today the company constructs a residential complex 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 planned bond issue is to be redeemed by residential premises in the building in 4, Artilleriyskaya str. (Odessa) with the construction being already licensed.
- The Issuer is involved in vigorous real estate market of Odessa, which is underpinned by high demand for residential and commercial premises.
Factors constraining the credit rating
- The Issuer does not have experience in investment and construction projects, neither in bonds` redemption.
- The planned bond issue is to be redeemed by premises in residential complex, being currently on the initial stage of construction.
- The size of the planned issue is UAH129.9m, with the Issuer`s asset balance having amounted to UAH805.3K as of Dec. 31, 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
