OREANDA-NEWS. On 18 April 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB+ (uaB plus) to registered housing bonds (series A, B) to be issued by Kiev-based Metronom LLC (`Issuer` or `company`). The amount of the issue is UAH205m, with 4 Ѕ-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a multifunctional trade and entertainment complex 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating
The Issuer is incorporated with the group of companies, which are involved in construction activities and has experience in building and reconstruction of industrial buildings.

The amount of funds invested in construction of the multifunctional complex located 18, Metrologychna St., city of Kiev, which premises to redeem the bond issue is UAH25.4m or 11% of the project estimated cost.

The general contractor to the construction of the complex is Tsentrobud ISK LLC, which has experience in construction and owns necessary production facilities.

The real estate prices have been constantly growing over the past few years in the city of Kiev.

Factors constraining the credit rating
Risks imposed by redistribution of cash flows with the group`s companies, neglecting Issuer`s interests.

The proprietary rights by the general contractual agreement and the rights for the incomplete building, which premises to redeem the bond issue are pledged as security for a bank loan.

The Issuer and the group`s companies do not have experience in residential construction, neither in housing bonds redemption.

The size of the upcoming issue of UAH205m exceeds Issuer`s assets of UAH29.3m and equity of UAH1m as of Dec. 31, 2007

Instability in legislation and tax environment controlling both the construction industry and project financing.