IBI-Rating has determined the credit rating of «MX CONSULTING» LLC bond issue

IBI-Rating informs on determining of the long-term credit rating of A series registered interest (unsecured) bonds of «MX CONSULTING» LLC at uaBBB- grade, the outlook is «stable».

The decision to issue these securities with a nominal value of UAH 60,000 ths taken in November 2019. The attracted financing will be directed to the acquisition of highly liquid residential real estate, overhaul and redevelopment of existing non-residential real estate, work and the provision of a wide range of services in order to improve the quality of operational management of non-residential real estate. Bonds were issued among a predetermined group of persons without a public offer. The bonds will be redeemed in January-February 2030.

The issuer has been contracted of voluntary third-party liability insurance, the subject of the contract is property interests which related to the obligation by indemnify the damage to the third parties and/or property of the third parties. Insurance risk is the occurrence of liability in accordance with applicable law for damage to property of third parties as a result of failure to fulfill obligations to pay coupon income or to repay bonds.

The property of «MX CONSULTING» LLC contains investment property with a residual carrying amount of UAH 41,929.3 ths. Investment property is diversified by type of property and city location.

Net income of «MX CONSULTING» LLC, which is formed by leasing investment property, during 2017-2019 demonstrated increasing dynamics and by 2019 amounted to UAH 978 ths (+1.6%). Profit from operating activities increased to UAH 277 ths (+ 67.9%). According to the results of 2017-2019 the activity was profitable, net profit by 2019 amounted to UAH 13 ths.

As of December 31, 2019, debt obligations on loans and financial credit amounted to UAH 6,752 ths (including principal of the loan and interest charges). Based on the results of the placement of interest-bearing bonds, a substantial increase in the volume of debt and an increase in the debt burden on the Issuer are expected.

In order to carry out the analytical research the materials provided by of «MX CONSULTING» LLC have been used, including: financial statements for 2017-2019, reference information about the activities of the enterprise, parameters of the issue of bonds, other necessary internal information, expectations of the IBI-Rating Rating Agency, as well as the information from the public sources, which the Rating Agency considers credible.

Finance department
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