OREANDA-NEWS. On 14 July 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 A) to be issued by Kharkiv-based Belyi Slon PV (`issuer` or `company`). The amount of the issue is UAH79m, with 3-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a residential complex located in the city of Kharkiv. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 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 bond issue is guaranteed by Invest-Market Ukraine CJSC, which has experience in construction of an office centre of 13.3K sq.m. floor area.

The volume of investments in construction of the residential complex located 3, Frontovaya St. Kharkiv, which premises to redeem the bond issue is 19.7% of the project estimated cost as at Jun. 1, 2008.

Factors constraining the credit rating

The issuer does not have experience in redemption of housing bonds.

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