OREANDA-NEWS. On 27 February 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaA- (uaA minus) (provisional) to UAH100m 5-year registered coupon bonds (B series) to be issued by Zhytomyr-based Zhytomyroblenergo Energy-Supplying Company OJSC (`Issuer` or `company`). The company`s principal activity is supply of electrical energy. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 9M2007 as well as other inside information furnished by the company.

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

Factors maintaining the credit rating
The upcoming issue is underwritten by Hotel Premier Palace OJSC, which EBITDA for 9M2007 made up UAH50.3m (UAH56.5m for 2006).
The Issuer enjoys a natural monopoly on electrical energy supply at regulated tariff in its region.
The Issuer`s customers have paid in full for all the energy consumed, in fact this indicator exceeded 100 percent in 2005-2007.

Factors constraining the credit rating
Issuer`s dependency upon state regulatory policy, namely tariff policy of National Commission for Energy Regulation.
Risks imposed by redistribution of funds within the legally informal VS Energy International Ukraine group of companies, which incorporates both the Issuer and its underwriter.