OREANDA-NEWS  On 14 November Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to registered discount bonds (series A-D) to be issued by Sevastopol-based Crimea Electro-Technical Works Saturn OJSC (`issuer` or `company`). The amount of the issue is UAH200m, due on Oct. 31, 2017. The company`s principal activity is investing and construction. Today the company constructs a recreational complex located in the city of Sevastopol. In the course of analysis Credit-Rating considered issuer`s financial statements for 2006-2007 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.

Factors maintaining the credit rating

The issue is guaranteed by Ukrkomplekt Plus LLC, which total amount of net profit recorded in 2005-2007 and 1H2008 made up UAH67.3m, with its equity to assets ratio being at 0.94 as of June 30, 2008.

The issuer has experience in investing and construction, in fact the issuer as a customer and investor has commissioned 1st phase of the recreational complex with an aquapark located in Victory Park in the city of Sevastopol.

Factors constraining the credit rating

Dependency of issuer`s performance indicators upon successful implementation of the project in the turbulent environment of Ukraine`s real estate sector.

The amount of the bond issue of UAH200m is in excess of the overall size of both issuer`s and guarantor`s equities of UAH119.4m as of June 30, 2008.

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