OREANDA-NEWS. On 18 June 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaCCC to registered coupon bonds (series A) to be issued by Chernivtsi-based Feniks SPV (`issuer` or `company`). The amount of the issue is UAH18m, with 4-year original maturity. The company`s principal activity is construction. Today the company constructs a residential building located in the city of Chernivtsi. 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 uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.

Factors maintaining the credit rating

The issuer has experience in residential construction; in fact the company has built a residential building of 2.5K sq.m. located in the city of Chernivtsi, with construction readiness of another one being currently 95%.

Factors constraining the credit rating

The amount of the bond issue of UAH18m exceeds issuer`s EBITDA of UAH0.9m.

Issuer`s volatile performance indicators accompanied by absence of development strategy for the period of the issue`s maturity.

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