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 uaB- (uaB minus) to registered coupon bonds (series A) to be issued by Kiev-based Gamma Consulting LLC (`issuer` or `company`). The amount of the issue is UAH10m, with 3-year original maturity. The company`s principal activity is retransmission of 4 digital TV-channels, including the own Gamma channel. 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 uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to 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 a license for utilization of 64 TVKs in the city of Kiev (4 digital channels), which intend to establish an experimental multi-channel air TV-network for broadcasting in DVB-T format.

Dynamic growth of TV-media sector.

Factors constraining the credit rating

Volatility and instability of national legislation, which affect sector of digital TV, which is greatly dependant upon state regulatory policy.

The issuer has rendered services on paid retransmission for a short period of time (the gains from this activity amounted to UAH55.9K over the period from October 2007 to March 2008).

Need in significant investments for implementation of projects aimed at establishment of multi-channel digital TV-networks.