OREANDA-NEWS. On 25 June 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBB- (uaBB minus) to registered housing bonds (series H-I) to be issued by Sumy-based Manufacturing and Commercial Company Notechs LLC (`issuer` or `company`). The amount of the issue is UAH13.5m with 3 Ёц-year original maturity. The company`s principal activity is investing and construction. Today the company constructs 4 residential buildings located in the city of Sumy. 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

The issuer has experience in investing and construction, specifically the issuer as a customer and a general contractor has delivered 2 residential buildings of 7.6K sq.m. total floor area located in the city of Sumy, with the construction readiness of another building located 3/1, Kharkivska St. (of 22.2K sq.m.) exceeding 70%.

The issuer owns production facilities, which empower it to supply the construction process on almost all stages.

The real estate prices and demand stably grow in the city of Sumy.

Factors constraining the credit rating

The issuer does not have experience in housing bonds redemption.

The construction of the residential building located 42-¬У, Cherepina St., Sumy which premises to redeem the bond issue is currently on the initial stage.

The face value of 3 bond issues, including the upcoming one, of UAH119.6m exceeds significantly the issuer`s equity of UAH1.7m as of March 31, 2008.

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