OREANDA-NEWS. On 19 May 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB- (uaB minus) to registered discount bonds (series A) to be issued by Crimea-based KRYMZHYLSPETSBUD LLC (`issuer` or `company`). The amount of the issue is UAH150m, with 5-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a number of residential buildings in the city of Yalta, the Autonomous Republic of Crimea. 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 issuer is affiliated via a participant with TF Budivelnyk PV, which,, starting from 1998 has built 8 residential buildings of 45.9K sq.m. total floor area, with another 5 buildings of 9.2K sq.m. being currently delivered.

Both the issuer and TF Budivelnyk PV have an order portfolio scheduled through 2012, which encompasses completion of 10 residential buildings of 92.6K sq.m, with 8 of them of 77.6K sq.m. by the affiliated company.

Growth in real estate demand and prices on the Sothern Coast of Crimea.

Factors constraining the credit rating

Issuer`s detrimental performance, specifically its uncovered loss made up UAH3.2m as of Dec. 31, 2007.

The issue size of UAH150m is in excess of issuer`s asset balance of UAH4.4m as of Dec. 31, 2007.

The issuer does not have a financial plan for the period of bonds` original maturity.

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