OREANDA-NEWS  On 20 November 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 A-C) to be issued by Dnepropetrovsk-based Dixon LLC (`issuer` or `company`). The amount of the issue is to be UAH88.1m due Dec. 31, 2012. The company`s principal activity is investing and construction.  Today the company constructs a residential complex with installed commercial and office facilities and a parking garage in the city of Dnepropetrovsk. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 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 volume of funds invested in construction of the residential complex located near ##27, 29 Shevchenko Blvrd., city of Dnepropetrovsk, which premises to redeem the upcoming bond issue, is UAH31.9m or 32% of the project`s cost as of Nov. 3, 2008.

Factors constraining the credit rating

Negative trends in Ukraine`s real estate market under which the capacities for construction funding is curbed.

The issuer does not have experience in investing and construction, neither in redemption of housing bonds.

The amount of the upcoming issue of UAH88.1m exceeds issuer`s assets of UAH30.9m as of June 30, 2008.

Issuer`s negative equity of (UAH0.1)m as of June 30, 2008, which was prompted by its detrimental performance during 2006-2007 and 1H2008.

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