OREANDA-NEWS  On 01 October Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaA to Kiev Oblast-based (city of Vyshgorod) Ukrgidroenergo OJSC (`issuer` or `company`) and to its upcoming issue of registered coupon bonds (series A) for the amount of UAH200m, with 3-year original maturity. The company`s principal activity is generation and supply of electrical energy at peak loads. 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 uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions.

Factors maintaining the credit rating

Issuer`s strategic importance, which prompts possible support from the state.

High issuer`s performance indicators: the issuer`s operating profitability recorded in 1H2008 made up 65.9%.

Low issuer`s debt burden: the coverage of issuer`s net debt with the EBITDA recorded in FY08 ended on Jul. 1, 2008, is 0.104 times.

Factors constraining the credit rating

High expected investments, including those with the borrowed funds.

Company`s dependency upon state regulatory policy of the industry, namely tariff policy set by National Electricity Regulatory Commission of Ukraine.

Risks imposed by hydrological situations.