IBI-Rating has affirmed the credit rating of housing bonds of "A.B.C" LLC at uaBBB grade

IBI-Rating informs on the affirmation of the credit rating of В, J, K, M-P series housing bonds of "A.B.C" LLC at uaBBB grade, with a «stable» outlook.

The affirmation of the credit rating is due to the preservation of the key factors that were previously noted by IBI-Rating. "A.B.C." LLC is continuing the construction of "Prestige Hall", a large-scale residential complex in Kiev, the housing bonds, which were issued for its financing, are the subject of the rating. "Privatbank" CB PJSC is the guarantor of the construction financing. The Issuer operates in the real estate market in Kiev, whose development indicators are higher than in other regions of Ukraine. "A.B.C." LLC has experience in implementation of investment and construction projects, and transfer of premises for housing bonds, currently 4 sections of "Prestige Hall" residential and office complex have been commissioned.

In addition, the scale of the project of "Prestige Hall" residential and office complex should be noted, which envisages the construction of a premium-class modern complex, with a total project area of 119 572.2 sq. m, designed for 663 apartments of project area of 67 031 sq. m, as well as commercial premises with an area of 7972 sq. m and a two-level underground parking for 650 cars. Stages of construction I and II (sections 3, 5 and 8) of "Prestige Hall" residential and office complex were commissioned in March 2011 and March 2012, respectively. Section 2 of Stage III was put into operation in June 2013, section 1 of Stage III is in the process of commissioning. The construction of the Stage IV (sections 4, 6, 7) is underway, its commissioning is envisaged for 2016-2017 (depending on the section). During the analyzed period, the Issuer's activity was unprofitable, - uncovered losses of «A.B.C.» LLC as at 09.30.2015, amounted to UAH 495.3 million, resulting in an exceptional dependence on borrowed capital.

IBI-Rating does not see any preconditions for upgrading of the credit rating. A negative impact on the credit rating may have: untimely funding and significant lagging behind the schedule of construction that may affect the timely fulfillment of obligations on repayment of housing bonds.

In order to carry out the analytical research the materials provided by «A.B.C.» LLC were used, including: financial statements for 2012-2014 and 9 months of 2015, the information on the bond issue, other necessary internal information as well as the information from the public sources, which the Rating agency considers reliable.

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