OREANDA-NEWS  On 28 October Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB- (uaB minus) to registered housing bonds (series V-AT) to be issued by Kiev-based Dniprozhylbud CJSC (`issuer` or `company`). The amount of the issue is to be UAH70m, with 2-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a number of residential buildings located in the city of Vyshgorod in Kiev Oblast. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 1H2008 and 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

The issuer has experience in investing and construction, in fact as a customer and investor the issuer built a residential building of 12.2K sq.m. located in the city of Vyshgorod.

The volume of funds invested by the issuer in construction of residential buildings (1st and 2nd phases) located Shevchenko Av. Vyshgorod, which premises to redeem two bond issues of series B-AT (including the upcoming one) amounts to UAH93.3m as of Sep. 22, 2008 or 43.5% of the overall amount of funding.

Factors constraining the credit rating

Issuer`s information opacity.

The bond issue of series A was overdue prompted by untimely commissioning of the object invested.

The face value of two bond issues including the upcoming one (all of UAH159.8m) exceeds the amount of issuer`s assets of UAH123.3m and equity of UAH8.5m as of June 30, 2008.

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