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

24.03.2023
IBI-Rating informs on affirming of the long-term credit rating of «A.B.C.» LLC target bonds of Y, Z, A1, B1 series at uaBBB grade with «negative» outlook and CreditWatch listing. The rating remains on CreditWatch List with negative outlook due to the martial law imposed in connection with Russian invasion of Ukraine, which has a significant negative impact on the economic condition of the country and its financial stability.

«A.B.C.» LLC continues the construction of the large-scale «Prestige Hall» RC in Kyiv city. Target 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 target 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 I and ІI 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 second section of the third line was put into operation in June 2013. In October 2019, the first section of the third line and section 4 of the fifth line were commissioned. Currently, the construction of sections 6, 7 is underway.

Unlike 2021, the performance of «A.B.C.» LLC was loss-making in the past year, with a net loss of UAH 207.9 million compared to a profit of UAH 20.6 million in 2021. As a result of the company's loss-making operations, the amount of uncovered loss has increased, indicating negative equity and exceptional dependence on borrowed capital. The developer also receives financial support from its main shareholder through multiple increases in the statutory capital.

In order to conduct the analytical research the materials provided by «A.B.C.» LLC have been used, including: financial statements for 2020-2022, 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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