OREANDA-NEWS  On 21 November Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to Kiev-based Korchuvatsky Complex for Building Materials OJSC (`company`). The company`s principal activity is leasing of owned immovable properties. In the course of analysis Credit-Rating considered company`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.

Factors maintaining the credit rating

Company`s moderate debt burden: as of June 30, 2008 the ratio of company`s net debt to the EBITDA earned in the past 12 months was recorded at 1.4x.

The amount of net earnings from the leasing of storage and office properties advanced to UAH37.5m from UAH7.5m during 2003-2007 (UAH39m for 1H2008), accompanied by its well diversification by tenants.

Factors constraining the credit rating

Opacity of company`s activities.

Absence of formalized development strategy.