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

The affirmed credit rating due to the preservation of the key factors, which IBI-Rating noted previously. «A.B.C.» LLC continues to build the large-scale residential complex «Prestige Hall» in Kyiv city, the housing bonds, which are the subject of rating, were issued for its financing. CB «PRIVATBANK» PJSC is the guarantor of the construction financing. The Issuer operates in the real estate market of Kyiv city, whose development indicators are higher as compared with other regions of Ukraine. «A.B.C.» LLC has experience in implementing investment and construction projects and transfer of premises by housing bonds, at present, 4 sections of the residential and office complex «Prestige Hall» have been commissioned. Additionally, it should be noted that the construction of the residential and office complex «Prestige Hall» is a large-scale project, which envisages the construction of a premium class modern complex of the total project area of 119 572.2 sq. m, designed for 663 apartments of the project area of 67 031 sq. m, as well as for commercial premises of the area of 7 972 sq. m, and two-level underground parking for 650 parking spaces.

Ist and ІInd lines of the construction (3rd, 5th and 8th sections) of the residential and office complex «Prestige Hall» were commissioned in March 2011 and March 2012, respectively. The 2nd section of the ІІІrd line was commissioned in June 2013, the 1st section of the ІІІrd line is being commissioned. The construction of the ІV th line (4th, 6th, 7th sections) is underway, its commissioning is scheduled for 2016-2018 (depending on the section). During the period under review, the Issuer’s activities were unprofitable, i.e., as at 31.03.2016, uncovered loss of «A.B.C.» LLC amounted to UAH 610.5 mln., causing exceptional dependence on borrowed capital.

IBI-Rating currently sees no preconditions for upgrading of the credit rating. A negative impact on the credit rating grade may have, as follows: delayed funding and significant lagging behind the construction schedule, which may affect timely fulfillment of obligations on repayment of housing bonds.

In order to conduct the analytical research the materials provided by «A.B.C.» LLC have been used, including: financial statements for 2013–2015 and 3 months of 2016, information on the bond issue, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

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