OREANDA-NEWS. On 04 July 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a short-term credit rating of uaK4 to registered housing bonds (series C) issued by Odessa-based SPS-INVEST LLC (`issuer` or `company`). The amount of the issue is UAH32m, due Apr. 30, 2009. The company`s principal activity is investing and construction. Today the company as a customer constructs a residential and recreational complex located in the city of Zaporizhzhia. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2006-2007 and 1Q2008 as well as its other inside information.

An obligor or a debt liability bearing uaK4 short-term rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. The obligor`s financial condition is insufficient to deter any foreseeable risks in the short-term period.

Factors maintaining the credit rating

The construction of the 1st phase of the residential and recreational complex located 27, Rozvagy St., Zaporizhzhia, which premises to redeem the bond issue of series A and B, is on the stage of completion.

The real estate prices and demand have been growing over the past few years in the city of Zaporizhzhia.

Factors constraining the credit rating

The Issuer does not have experience in investment and construction projects, neither in housing bonds redemption.

The construction of the 2nd phase of the above mentioned residential and recreational complex, which premises to redeem the bond issue of series C is currently on the initial stage.

The size of the face value of 2 bond issuances including the upcoming one (overall UAH66.3m) is in excess of issuer`s equity of UAH4.1m as at March 31, 2008.

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