Credit-Rating Assigned Profit Grupp LLC`s Bond Issue uaCC
OREANDA-NEWS. On 16 June 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaCC to registered discount bonds (series A) issued by Kiev-based PROFIT GRUPP Development Company LLC (`issuer` or `company`). The amount of the issue is UAH100m, with 8-year original maturity. The company`s principal activity is development. In the course of analysis Credit-Rating considered issuer`s financial statements for 2006-2007 as well as its other inside information.
An obligor or a debt liability with uaCC credit rating is characterised with the VERY HIGH DEFAULT POSSIBILITY.
Factors maintaining the credit rating
The issuer operates in Kiev`s development market, where demand for real estate remains stably high.
Factors constraining the credit rating
High specific gravity of issuer`s non-specialized assets, namely investments in securities and authorized stocks of other companies, which amount made up of 98% of overall issuer`s assets.
Issuer`s property and funds are pledged as security for a bank loan.
The amount of the discount bond issue of UAH100m exceeds issuer`s equity of UAH8.5m as of Dec. 31, 2007.
Issuer`s information opacity.
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