OREANDA-NEWS. On 31 January 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine assigned a long-term credit rating of uaB to UAH129.1m 2-year registered housing bonds (A-D series) to be issued by Kiev-based Agrofirma Troyanda OJSC (Issuer or company). The companys primary activity is investing and construction. Today the company implements a project aimed at construction of a residential complex with social facilities and a parking and at improvement of natural monument Kristerovaya Gorka located in the city of Kiev. In the course of analysis Credit-Rating considered Issuers financial statements for 2002-2006 and 9M2007 as well as other inside information furnished by the company.

An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions.

Factors maintaining the credit rating
The planned bond issue is to be redeemed with premises in Kristerovaya Gorka residential complex, situated 45, Vishgorodska st., Kiev, with the 1 st stage of construction invested UAH27.5m or 1.4 per cent of the overall value of all stages as of Dec.1, 2007.
The Issuer may enjoy financial backing from legally informal financial and commercial group in the event of need.
The Issuer operates on Kievs real estate market, where prices and demand have been growing over the past few years.

Factors constraining the credit rating
The Issuer does not have experience in investment and construction projects, neither in housing bonds redemption.
Risks imposed by size of the project: the overall projects floor space makes up 451.2K sq.m. the project embraces 12 stages.
The size of the planned issue of UAH129.1m exceeds 19.6x Issuers equity of UAH6.5m and 3.5x Issuers assets of UAH36.7m as of Oct. 1, 2007.
Issuers detrimental performance in 2004-2006 and 9M2007: the Issuers uncovered loss made up UAH4.6m as of Oct. 1, 2007.
Instability in legislation and tax environment controlling both the construction industry and project financing.