OREANDA-NEWS. On 24 March 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB- (uaB minus) (provisional) to UAH115.9m 2-year registered housing bonds (series D-H) to be issued by Kiev Oblast-based Systemabud LLC (`Issuer` or `company`). The company`s principal activity is investing and construction. Today the company as a customer constructs a multifunctional residential complex with installed facilities and a parking located in the city of Boryspil. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2005-2007 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating
The construction readiness of the complex located 14, Dzerzhiskogo st., city of Boryspil, which premises are to redeem the upcoming bond issue is 4 percent as at beginning of February 2008.
The real estate prices and demand have been stably growing in the city of Boryspil over the past few years.

Factors constraining the credit rating
The Issuer does not have experience in investment and construction projects, neither in redemption of housing bonds.
The nominal size of two bond issuances, including the upcoming one, all of UAH193.6m exceeds Issuer`s equity of UAH1.5m as of Dec. 31, 2007.
Issuer`s detrimental performance in 2005-2006 with the uncovered loss making up UAH1.2m as of Dec. 31, 2007.
Instability in legislation and tax environment controlling both the construction industry and project financing.