IBI-Rating has affirmed the credit rating of housing bonds of «А.В.С.» LLC at uaBBB grade

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

«A.B.C.» LLC continues the construction of the large-scale «Prestige Hall» RC in Kyiv city. Housing bonds, the object of the rating, were issued to finance the construction of the above-mentioned residential complex. 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 premium class complex, of the total project area of 119.6 sq. m, for 663 apartments, as well as commercial premises and a two-level underground parkings.

The Ist and ІInd lines of the construction (sections 3, 5 and 8) of the Residential and office complex «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 2018-2019 (depending on the section).

During the period under review, the Issuer’s activity was unprofitable, i.e. as at 30.09.2017, uncovered loss of «A.B.C.» LLC amounted to UAH 648.5 mln. determining exceptional dependence on borrowed capital. The Developer gets financial support from its main participant by means of a significant increase in the authorized capital. Thus, in the Q3 2016, the authorized capital of «A.B.C.» LLC increased by UAH 150 mln. - up to the amount of UAH 475 mln. of which UAH 87 mln remained unpaid, as on 30.09.2017.

In order to conduct the analytical research the materials provided by «A.B.C.» LLC have been used, including: annual financial statements for 2014-2016 and 9 months of 2017, information on the issue of bonds, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

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