Credit-Rating Assigned Ilion LLC`s Upcoming Bond Issue uaBBB
OREANDA-NEWS On 17 September Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB- (uaBBB minus) to registered housing bonds (series A, B) to be issued by Kiev-based Ilion LLC (`issuer` or `company`). The amount of the issue is UAH48.9m, with 3-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a residential building with installed social facilities and parking garages located in the city of Kiev. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 and 1Q2008 as well as its other inside information.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Factors maintaining the credit rating
The issuer is incorporated with Kovalska group, which companies have experience in investment and construction projects in the city of Kiev and own production facilities, which empower the issuer to supply the construction process on almost all stages.
Factors constraining the credit rating
Issuer`s extreme dependence upon Kovalska group.
Instability in legislation and tax environment controlling both the construction industry and project financing.
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