OREANDA-NEWS. On 03 April 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBB- (uaBB minus) to registered housing bonds (series E-J) to be issued by Donetsk-based Direction of Office Buildings LLC (`Issuer` or `company`). The amount of the issue is UAH105.3m with 5-year original maturity. The company`s principal activity is investing and construction. Today the company constructs 3 residential buildings located in the city of Donetsk. In the course of analysis the agency considered Issuer`s financial statements for 2002-2007 and its other inside information.

An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by 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 Issuer has experience in investing and construction, in fact the Issuer has delivered 3 office and commercial buildings of 14.2K sq.m. floor area.
The real estate price and demand have been stably growing over the past few years in the city of Donetsk.

Factors constraining the credit rating
The Issuer does not have experience in redemption of housing bond issuances.
The overall nominal size of four bond issues including the upcoming one (UAH195.8m) exceeds Issuer`s assets of UAH71.2m as of Dec. 31, 2007.
Issuer`s negative equity of UAH0.3m, which stems from Issuer`s detrimental performance in 2005-2006.
Instability in legislation and tax environment controlling both the construction industry and project financing.