OREANDA-NEWS. On 17 March 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it had assigned a long-term credit rating of uaB- (uaB minus) to UAH530.1m 4-year registered coupon bonds to be issued by Kiev-based Firma Ukrtorg LLC (`Issuer` or `company`). The company`s principal activity is investing and construction. Today the company as a customer constructs a hotel and residential complex with social facilities located in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2007 as well as its other inside information.

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. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories .

Factors maintaining the credit rating
Altis-Holding Corporation, which is a general contractor of the complex`s construction has experience in construction industry and operates necessary production facilities.
The real estate prices and demand have been growing over the past few years in the city of Kiev.

Factors constraining the credit rating
The Issuer does not have experience in investment and construction projects, neither in housing bonds redemption.
The issue size of UAH530.1m exceeds Issuer`s assets of UAH11.6m and its equity of UAH3.9m as of Dec. 31, 2007.
The complex`s construction is currently on the initial stage.
Issuer`s detrimental performance in 2003-2007, specifically its uncovered consolidated loss amounted to UAH0.2m as of Dec. 31, 2007.
Instability in legislation and tax environment controlling both the construction industry and project financing.