OREANDA-NEWS. On 27 April 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaCCC to registered housing bonds (series A) to be issued by Crimea-based Svit Ltd LLC (`issuer` or `company`). The amount of the issue is UAH59.5m, due March 14, 2012. The company`s principal activity is investing and construction. Today the company constructs a hotel located in the city of Yalta, Autonomous Republic of Crimea. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 and 9M2008 and its other inside information.

An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.

Factors maintaining the credit rating

The amount of funds invested in construction of a hotel located 9, Ignatenko Str., Yalta, which premises to redeem the bond issue was UAH3.1m or 5.2% of the project`s estimated cost as of Feb. 25, 2009.

Factors constraining the credit rating

Ongoing negative trends in Ukraine`s real estate sector.

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

The amount of the bond issue of UAH59.5m exceeds size of issuer`s assets of UAH2.5m and equity of UAH2m as of Sep. 30, 2008.

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