OREANDA-NEWS. On 12 August 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine, assigned a long-term credit rating of uaB- to UAH102.7m 3-year upcoming registered housing bonds (A-E series) to be issued by Zaporozhye-based VS-Investstroy LLC (`Issuer` or `Company`). The company`s principal activity is investing and construction. Today the company carries out a construction project of apartment building in urban-type village Gaspra in the Autonomous Republic of Crimea. 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 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:

Amount of investments into carrying out the project of apartment building construction in 22, Alupkinskoye highway in urban-type village Gaspra in the AR of Crimea, performed by the Issuer, premises in which shall be given under the upcoming issue of housing bonds, constitutes UAH12.2m as of June 24, 2008, or 7% of the estimated value of the project;

Growth of prices and demand for residential estate in the resort areas of AR of Crimea during the recent years.

Factors constraining the credit rating:

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

Amount of the upcoming bond issue (UAH102.7m) exceeds the amount of assets (UAH0.6m) and equity of the Issuer (UAH0.1m) as of March 31, 2008;

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