IBI-Rating has affirmed the credit rating of bonds of B-I Series of "Pivdentransavto" LLC at uaCC grade

IBI-Rating rating agency informs on the affirmation of the credit rating assigned to the registered secured coupon bonds of «Pivdentransavto» LLC of B-I series at uaCC grade with a «stable» outlook.

The affirmed credit rating grade of the debt instrument of "Pivdentransavto" LLC reflects the preservation of the key factors that were previously noted by the Rating Agency. Thus, the real estate market of Odessa city, where the funds generated from the placement of bonds were forwarded for the implementation of projects, is inherent in high sensitivity to the economic situation in the country. In addition, the low level of economic activity, as well as minimum amount of the Issuer's own capital lead to exclusive dependence of "Pivdentransavto" LLC on external funding sources, as well as high leverage.

Bonds of B-I series are secured by surety agreements concluded with "DNEPR-CAPITAL" LLC, which is being wound-up. IBI-Rating does not take into account the availability of collateral for the series B-I bonds of "Pivdentransavto" LLC as a factor affecting the Issuer’s credit rating grade.

IBI-Rating Rating Agency sees no reason to increase the credit rating grade. A negative impact on the credit rating grade may have, as follows: non-fulfillment of debt obligations, a bankruptcy case filed against the Issuer, deterioration of the political and economic situation in the country.

In order to carry out the analytical research the materials obtained from "Pivdentransavto" LLC, including: the financial statements for 2013-2015, information on the bond issue of В-I series, other necessary internal information, as well as the information from the public sources, which the rating agency believes reliable.

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