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

IBI-Rating informs on affirming the long-term credit rating of B, I-P series of target bonds of LLC «A.B.C.» at uaBBB, with a "stable" outlook.

The affirmation of the credit rating is due to retaining the key factors that were previously noted by IBI-Rating. LLC «A.B.C.» continues the construction of a large-scale residential complex "Prestige Hall" in Kiev; the target bonds, which are the subject of the rating, were issued for its financing. PJSC CB "Privatbank" acts as a guarantor of the construction financing. The Issuer operates in the real estate market in Kiev, which has higher development indicators than in other regions of Ukraine. LLC «A.B.C.» has experience in implementing investment and construction projects and transferring of target bonds premises.

The net income of LLC «A.B.C.» for 3 months of 2015 amounted to UAH 8.4 mln, while the operations remained unprofitable, and as at 03.31.2015 the amount of uncovered loss was UAH 535.2 mln. In order to cover the losses, in the 3rd quarter of 2014 the Issuer’s registered capital was increased by UAH 200 mln up to UAH 325 mln.

A positive impact on the credit rating grade of bonds may have the reduction of sectoral risks and improvement of the macroeconomic situation in the country. A negative impact on the credit rating grade may have the backlog from the schedule of construction and delay of funding, the recall by the guarantor of guarantees, further deterioration of the political and economic situation in the country.

In order to perform the analytical research the materials obtained from the LLC «A.B.C.», including the financial statements for 2012-2014 and 3 months of 2015, the information on the issuance of target bonds, other necessary internal information were used, as well as the information from the public sources, which the rating agency considers reliable.

Department of corporate ratings area
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84