OREANDA-NEWS. On 07 May 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to registered coupon bonds (series A) to be issued by Kiev-based Bears-Logistic Sbsd. (`issuer` or `company`). The amount of the issue is UAH12.5m, with 4-year original maturity. Today the company constructs an office and warehouse complex located in Kiev Oblast. 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.

Factors maintaining the credit rating

The issuer is incorporated with the Bears Group, which companies are engaged with construction of warehouses, in fact there has been delivered an office and warehouse complex located in the city of Cherkassy, which estimated value is UAH33.8m.

The demand and rent fee for warehouse premises have been constantly growing.

Factors constraining the credit rating

Risks imposed by redistribution of cash flows within the Bears Group neglecting issuer`s interests, which makes it vulnerable to risks of the entire group.

The group`s significant debt burden, which is expected to be further growing.

Detrimental performance of the parental company and the issuer, with the consolidated uncovered loss making up UAH7.5m as of Dec. 31, 2007.

The servicing and redemption of the upcoming issue is contingent upon full and timely delivery of the office and warehouse complex located in the borough of Kalynivka (Kiev Oblast), which construction is corrently on the stage of arrangement.

Risks imposed by insufficient funding of the said complex`s construction, which is associated with limited company`s access to the external funds, due to the fact that almost all group`s property is pledged as security.