OREANDA-NEWS. On 22 August 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to registered housing bonds (series A-D) to be issued by Dnepropetrovsk-based Dialog LLC (`issuer` or `company`). The amount of the issue is UAH85.6m, with 3-yera original maturity. The company`s principal activity is investing and construction. Today the company implements 3 investment and construction projects located in the city of Dnepropetrovsk. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 and 1H2008 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.

Factors maintaining the credit rating

The project located Naberezhnaya Pobedy, 40, city of Dnepropetrovsk, involves NPO Sozidatel CJSC, which has experience in construction being one of the leading construction companies in Dnepropetrovsk.

Factors constraining the credit rating

The issuer does not have experience in investment and construction projects, neither in redemption of housing bonds.

The 1st phase of the residential complex, which premises to redeem the bond issue, is currently on the initial stage of construction.

The amount of the upcoming issue of UAH85.6m exceeds issuer`s assets of UAH21.6m and equity of UAH9.5m as of June 30, 2008.

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