OREANDA-NEWS. On 11 August 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine, assigned a long-term credit rating of uaB+ to UAH50.4m 1-year upcoming registered housing bonds (A-B series) to be issued by L`vov-based Lev LLC (`Issuer` or `Company`). The company`s principal activity is investing and construction. Today the company carries out 2 investment and construction projects in the city of L`vov. 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 experience in investment and construction activities: the Issuer as a client and investor has constructed an apartment building in L`vov with the total area of 2.5K square meters; another apartment building construction in 30, Velichkovskogog street (with total area of 12,3K square meters) is 70% complete;

Participation in the project for the construction of an apartment building located at 10, A.Linkol`na street in L`vov (premises of which will be used to redeem the upcoming housing bonds issue) of the general contractor Gorstroymonolit LLC, which has already constructed the residential estate of 23.3K square meters.

Factors constraining the credit rating:

The Issuer has no experience in bonds redemption by giving appropriate premises to their owners;

The construction of an apartment building located at 10, A.Linkol`na street in L`vov is at the initial stage;

Amount of the upcoming bond issue (UAH50,4m) exceeds the amount of assets (UAH32m) and equity of the Issuer (UAH3.4m) as of March 31, 2008;

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