OREANDA-NEWS. On 31 July 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine, assigned a long-term credit rating of uaBB- to UAH11.6m 1.5-year registered upcoming housing bonds (A-C series) to be issued by the Simferopol-based YuBK LLC (`Issuer` or `Company`). The company`s principal activity is investing and construction. Today the company constructs a hotel in the city of Alupka, Crimea. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2007 and 1Q2008 as well as its other inside information provided by the company.

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:

Through the participants, the Issuer is connected with Professional LLC, which has already constructed more than 51K square meters of residential and commercial real estate. Besides Professional LLC is a general contractor of the hotel construction located at 3, Dvortsovoe Shosse, Alupka which premises will be used to redeem the housing bond issue.

Readiness of the hotel construction project located at 3, Dvortsovoe Shosse, Alupka is 35% as of June 01, 2008;

Increase in prices and demand for the real estate in the South Cost of the Crimea over the past years.

Factors constraining the credit rating:

Issuer and guarantor (Professional LLC) have no experience in bonds redemption by giving appropriate premises to their owners;

Amount of the upcoming bond issue (UAH11.6m) exceeds the total equity of the Issuer and guarantor (UAH3.4m) as of March 31, 2008;

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