OREANDA-NEWS. December 5, 2007. Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBB to UAH50m 5-year registered coupon bonds (A series) to be issued by Odessa-based Odessa Trade House Sonyachna Dolyna LLC, the agency's press service reported. The company's primary activity is wholesale and retail trade of oil and fat products. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2002-2006 and 9M2007 as well as other inside information furnished by the company.

An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.

Factors maintaining the credit rating:

The Issuer is a distributor of Odessa Oil and Fat Combine OJSC's products, which is one of the leaders in Ukrainian margarine market (17 per cent share in 2006). The Issuer's sales grew 4.3x to UAH101m during 2002-2006 (UAH134m for 9M2007) with such a tendency expected to be retained after setting in operation in 2008 the oil processing facilities at Illichevsk Oil and Fat Combine OJSC, which general distributor the Issuer is going to be.

Factors constraining the credit rating:

Issuer's poor performance over the past few years resulting in operating loss of UAH6.7m for 9M2007 (in this period the Issuer gained net profit due to extra evaluation of securities). The size of A series bonds of UAH50m exceeds Issuer's equity of UAH38.7m as of Oct. 1, 2007. High Issuer`s dependency upon Odessa Oil and Fat Combine OJSC's performance.