Credit-Rating Upgrades APOLLO-H LLC`s Bonds to uaBB
OREANDA-NEWS. On 10 April 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it upgraded to uaBB from uaB- (uaB minus) the long-term credit rating assigned to registered housing bonds (series A-C) issued by Mykolayiv Oblast-based APOLLO-H LLC (`issuer` or `company`). The amount of the issue is UAH24m due Dec. 31, 2009. The company`s principal activity is investing and construction. Today the company constructs a residential building with installed premises located in the city of Yuzhnoukrainsk. To revise the rating Credit-Rating considered issuer`s financial statements for 4Q08 and full 2008 and its other inside information.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
The residential building located 22, Lenina Av., city of Yuzhnoukrainsk, which premises to redeem the bond issue of series A, B, C, has recently been commissioned.
Factors constraining the credit rating
The issuer does not have experience in redemption of housing bonds.
Issuer`s negative equity of UAH(3.1m) as of Dec. 31, 2008.
Instability in legislation and tax environment controlling both the construction industry and project financing.
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