OREANDA-NEWS. On 02 September 2008 Credit-Rating, a nationally-recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBB+ (uaBB plus) to registered housing bonds (series B-D) issued by Dnepropetrovsk-based Financial and Construction Company Dnipro-Invest-Bud CJSC (`issuer` or `company`). The amount of the issue is UAH121.9m, with 3 ½ - year original maturity. The company`s principal activity is investing and construction. Today the company implements 9 projects on construction of residential and commercial real estate. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 1H2008 as well as its other inside information.

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

The issuer has necessary experience in investing and construction, in fact the issuer as a general contractor has built 6 residential buildings of 47.1K sq.m. total floor area and has delivered 10 items of reconstructed and constructed commercial real estate of 133.4K sq.m. total floor area.

The issuer is incorporated with the group, which companies own production facilities, that empowers the issuer to supply the construction process on almost all stages, including with own-produced materials.

Issuer`s profitable performance in 2003-2007, specifically the amount of retained earnings made up UAH8.1m as of Jun. 30, 2008.

The real estate prices and demand in the city of Dnepropetrovsk are higher than the country`s averages.

Factors constraining the credit rating

The issuer does not have experience in redemption of housing bonds.

The construction of a residential complex located in Parus-2 residential area in Dnepropetrovsk, which premises to redeem the bond issue, is currently on the initial stage.

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