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

10.10.2016
IBI-Rating informs on affirming of the long-term credit rating of housing bonds of «A.B.C.» LLC of В, J, K, M-P series at uaBBB grade with a «stable» oulook.

The affirmation of the credit rating is due to preservation of the key factors, which IBI-Rating noted previously. «A.B.C.» LLC continues the construction of the large-scale RC «Prestige Hall» in Kyiv city. Housing bonds, the object of the rating, were issued to finance the construction of the above-mentioned residential complex. 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 to other regions of Ukraine. «A.B.C.» LLC has experience in implementing investment and construction projects and transferring of premises through housing bonds. At present, 4 sections of «Prestige Hall» Residential and Office Complex have been put into operation. Additionally, it should be noted that «Prestige Hall» Residential and Office Complex is a large-scale project, which envisages construction of a modern complex of premium class, of the total project area of 119 572.2 sq. m, for 663 apartments with a project area of 67 031 sq. m, as well as commercial premises with an area of 7 972 sq. m, and a two-level underground parking for 650 parking spaces.

The Ist and ІInd lines of the construction (sections 3, 5 and 8) of the Residential and Office Ccomplex «Prestige Hall» were put into operation in March 2011 and March 2012, respectively. The 2nd section of the ІІІrd line was put into operation in June 2013, the 1st section of the ІІІrd line is in the process of commissioning. The construction of the ІVth line (sections 4, 6, 7) is underway, their commissioning is scheduled for 2016-2018 (depending on the section). During the period under review, the Issuer’s activity was unprofitable, i.e. as at 30.09.2016, uncovered loss of «A.B.C.» LLC amounted to UAH 583.9 mln. , determining the exceptional dependence on borrowed capital.

IBI-Rating currently sees no prerequisites for upgrading of the credit rating. A negative impact on the credit rating grade may have, as follows: untimely financing and significant lagging behind the construction schedule, which may affect the 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: annual financial statements for 2013-2015 and 6 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.

Corporate Department.
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua