OREANDA-NEWS  On 05 September 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 D-J) to be issued by Kiev-based Ekobud LLC (`issuer` or `company`). The amount of the issue is to be UAH148.6m, with 3-year original maturity. The company`s principal activity is investing and construction. Today the company implements 6 investment and construction projects. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 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.

Factors maintaining the credit rating
The issuer has necessary experience in investing and construction, in fact during 2003-2007 the issuer as a general contractor built 5 residential building located in the city of Kiev and Kiev Oblast (including 2 building built by the issuer as a customer) of 91.2K sq.m.
The construction readiness of the building #1 incorporated with the residential complex located in the borough of Petrivske, Kyiv-Svyatoshyn District of Kiev Oblast and of the residential building with installed parking garage located 48a, Prokofyev Str. city of Sumy, which premises to redeem the upcoming bond issue is 30% and 33.6% respectively.

Factors constraining the credit rating
The proprietary rights for non-residential premises in the building #1 located in the borough of Petrivske are pledged as security for a bank loan.
Issuer`s significant debt burden: the volume of liabilities on funds raised for funding the construction (special-purpose funding, bank loans and housing bonds) of UAH319.3m exceeds significantly the amount of issuer`s equity of UAH0.1m as of March 31, 2008.
The issuer does not have experience in redemption of housing bonds.
Instability in legislation and tax environment controlling both the construction industry and project financing.