OREANDA-NEWS. On 26 December 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB+ (uaB plus) to registered housing bonds (series D-M) to be issued by Sumy-based ALFASYSTEMBUD OJSC (`issuer` or `company`). The amount of the issue is UAH28.8m due Aug. 31, 2010. The company`s principal activity is investing and construction. Today the company as a customer, investor and general contractor implements 2 construction projects located in the city of Sumy. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 9M2008 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: the company as a general contractor has built over 25K sq.m. of real estate.

The amount of funds invested in construction of a residential building located 23, Lushpy Av. - 9, Prolivna Str., city of Sumy, which premises are to redeem the upcoming bond issue, is UAH4.9m as of Oct. 30, 2008 or 20% of the project`s estimated value.

Factors constraining the credit rating

Ongoing negative trends in Ukraine`s real estate sector, which limit access to funding.

The issuer does not have experience in redemption of hosuing bonds.

The amount of the upcoming bond issue of UAH28.8m is in excess of issuer`s equity of UAH3.4m as of Sep. 30, 2008.

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