OREANDA-NEWS. January 10, 2008. Credit-Rating, a nationally recognized credit rating agency in Ukraine has assigned a long-term credit rating of uaBBB+ (uaBBB plus) to UAH113.6m 7-year registered housing bonds (A-X series) to be issued by Dnepropetrovsk-based AGRA CJSC, the agency's press service reported. The company's primary activity is investing and construction.

Today, the company as a customer constructs 2 multifunction complexes KASKAD-PLAZA and ENIGMA in the city of Dnepropetrovsk. In the course of analysis Credit-Rating considered Issuers financial statements for 2003-2006 and 9M2007 as well as other inside information furnished by the company.

An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions. The plus (+) or minus (-) modifier denotes ratings relative status within major categories.

Factors maintaining the credit rating.

    * The Issuer is incorporated with Alef trade and industrial corporation, which is powerful association operating in different sectors in both domestic and international markets, with the Issuer enjoying backing from the corporation.
    * The Issuer has experience in investment and construction projects; in fact the Issuer has implemented 9 developer projects in the sector of commercial real estate (the overall area of the buildings constructed makes up 23.6K sq.m.)
    * High and stable Issuers equity to assets ratio.

Factors constraining the credit rating.

    * Risks imposed by the project size, specifically in the forthcoming years the company plans to implement five investment and construction projects of 430K sq.m., which almost 3x exceeds the floor area of the objects built by the Issuer earlier.
    * The Issuer is extremely dependant upon Alef Corporation, which risks are common with those of the Issuer.
    * Instability in legislation and tax environment controlling both the construction industry and project financing.