IBI-Rating has updated the credit rating of housing bonds of «А.В.С.» LLC

IBI-Rating informs on affirming of the long-term credit rating of housing bonds of S-X Series of «A.B.C.» LLC at uaBBB grade with changing the rating outlook from «stable» to «evolving». The change of the outlook is due to the uncertainty regarding the degree of influence on the Issuer's activities of the expected slowdown in business activity due to the implementation of restrictive measures by the government in connection with the worsening epidemiological situation in the country.

«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, 6 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 in March 2012, respectively. The 2nd section of the ІІІrd line was put into operation in June 2013. In October 2019, the 1st section of the ІІІrd line and 4th section of the ІVth line were commissioned.

According to the results by 2019, the Issuer's activities were profitable - net profit amounted to UAH 66.6 mln, but a significant amount of uncovered loss (as of 31/12/2019 UAH 601.8 mln) leads to an 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 Q4 2019, the authorized capital of «A.B.C.» LLC increased by UAH 32.5 mln - up to the amount of UAH 507.5 mln.

In order to conduct the analytical research the materials provided by «A.B.C.» LLC have been used, including: financial statements for 2017-2019, 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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