OREANDA-NEWS. On 23 January 2009 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 F-H) to be issued by Poltava-based Budinvest SM CJSC (`issuer` or `company`). The amount of the issue is UAH53.5m due Jan. 31, 2012. The company`s principal activity is investing and construction. Today the company implements 2 construction projects located in the cities of Sumy and Poltava. In the course of analysis Credit-Rating considered issuer`s financial statements for 2006-2007 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 is incorporated with legally informal group of companies, which operates in the construction sector of cities of Poltava and Sumy, in fact it has built and commissioned 2 residential buildings of 14.2K sq.m. total floor are, with the 2nd phase of construction of a residential building of 7.5K sq.m. being on the stage of completion.

Factors constraining the credit rating

Ongoing negative trends in Ukraine`s real estate sector, which hampers access to source of financing.

The construction of a residential building with installed parking located 60Д, Oktyabrskaya Str., Poltava, which premises to redeem the bond issue is currently on the initial stage.

Issuer`s vulnerability to risk of the entire group.

Neither the issuer nor the group has experience in redemption of housing bonds.

The amount of the upcoming bond issue of UAH53.5m is in excess of both the issuer`s and guarantor`s total equity of UAH33.5m as of Sep. 30, 2008.

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