OREANDA-NEWS. On 16 June 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBB to registered housing bonds (series A, B) to be issued by Crimea-based LOGOS CJSC (`issuer` or `company`). The amount of the issue is UAH14.6m, with 1-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a hotel located in the city of Evpatoriya. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 1Q2008 as well as 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.

Factors maintaining the credit rating

The issuer is associated with one of the leading construction companies in the city of Evpatoriya, namely Stroykompleks OJSC, which is a contractor to a construction of hotel located 11, Franko St., which premises to redeem the upcoming bond issue.

The issuer`s shareholder equity of UAH15m exceeds the amount of the upcoming bond issue of UAH14.6m

The volume of funds invested in the construction of the above hotel makes up 7% of the project`s estimated cost.

The real estate prices and demand have been growing over the past few years.

Factors constraining the credit rating

Neither the issuer nor Stroykompleks OJSC have experience in redemption of housing bonds.

High specific gravity of non-specialized assets (securities) in the issuer`s asset structure, in fact 89% as of March 31, 2008.

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