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IBI-Rating has assigned the credit rating of housing bonds of «А.В.С.» LLC
07.06.2023IBI-Rating informs on the assignment of long-term credit rating of «A.B.C.» LLC housing bonds of C1, D1, E1 series (before conversion of Z, A1, B1 series) and the affirmation of long-term credit rating of housing bonds of Y series at uaBBB grade with a «negative» outlook and CreditWatch listing. Accordingly, the rating of the housing bonds of series Z, A1, B1 was withdrawn. 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 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 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.
According to the results of the first quarter of 2023, «A.B.C.» LLC was unprofitable - a net loss amounted to UAH 56 thousand, compared to a loss of UAH 44.2 million for the same period last year. As a result of the Issuer's loss-making activities, the amount of uncovered loss increased, which leads to a negative value of equity and indicates an exclusive dependence on borrowed capital.
The assignment of the credit rating at the appropriate level is due to the availability of financial support from the owners of the Developer, significant experience in the implementation of investment and construction projects and repayment of housing bonds, the scale of the project of the residential and office complex «Prestige Hall», as well as higher indicators of development of the residential real estate market in Kyiv, compared to other regions of Ukraine. In turn, the Rating agency takes into account the unprofitable current activities and a significant amount of uncovered losses, as well as sensitivity to operational and other risks due to the ongoing military operations in Ukraine as a result of the Russian aggression.
In order to conduct the analytical research the materials provided by «A.B.C.» LLC have been used, including: financial statements for 2020-2022 and Q1 2023, 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.
Corporate department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
«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 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 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.
According to the results of the first quarter of 2023, «A.B.C.» LLC was unprofitable - a net loss amounted to UAH 56 thousand, compared to a loss of UAH 44.2 million for the same period last year. As a result of the Issuer's loss-making activities, the amount of uncovered loss increased, which leads to a negative value of equity and indicates an exclusive dependence on borrowed capital.
The assignment of the credit rating at the appropriate level is due to the availability of financial support from the owners of the Developer, significant experience in the implementation of investment and construction projects and repayment of housing bonds, the scale of the project of the residential and office complex «Prestige Hall», as well as higher indicators of development of the residential real estate market in Kyiv, compared to other regions of Ukraine. In turn, the Rating agency takes into account the unprofitable current activities and a significant amount of uncovered losses, as well as sensitivity to operational and other risks due to the ongoing military operations in Ukraine as a result of the Russian aggression.
In order to conduct the analytical research the materials provided by «A.B.C.» LLC have been used, including: financial statements for 2020-2022 and Q1 2023, 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.
Corporate department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua