OREANDA-NEWS. On 26 January 2009 was Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaK4 (provisional) to registered housing bonds (series D4-B5) to be issued by Kharkiv-based Trest Zhytlobud-1 OJSC (`issuer` or `company`). The amount of the issue is UAH30.9m due June 29, 2009. The company`s principal activity is investing and construction. Today the company implements 10 investment and construction projects located in the city of Kharkiv. 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 bearing uaK4 short-term rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. The obligor`s financial condition is insufficient to deter any foreseeable risks in the short-term period.

Factors maintaining the credit rating

The issuer has experience in conducting construction works; in fact the issuer has commissioned over 250K sq.m. of residential premises over the past 10 years, with 75.3K sq.m. of it delivered in 2007.

The issuer owns production facilities and structural subdivisions, which empower the issuer to supply the construction process on almost all its stages.

Issuer`s profitable performance in 2003-2007 and 9M2008, in fact the total retained earnings amounted to UAH43.1m as of Sep. 30, 2008.

The issuer has experience in redemption of housing bonds.

Factors constraining the credit rating

Ongoing negative trends in Ukraine`s real estate sector.

Issuer`s information opacity.

The issuer`s performance and key figures are contingent upon size of the projects and order portfolio.

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