OREANDA-NEWS. January 12, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBB from uaBB- (uaBB minus) the long-term credit ratings assigned to UAH43.4m and UAH8.8m 5-year registered housing bonds (C and D series respectively) issued by the Donetsk-based Direction of Office Buildings LLC (‘Issuer’ or ‘company’). The outlook on the ratings is stable. The company’s principal activity is investing and construction. Today the company carries out some construction projects in the city of Donetsk. To revise the rating Credit-Rating considered issuer’s financial statements for 3Q and 9M2009 and other inside information.

An obligor or a debt liability with uaBB credit rating is characterized with the lower than sufficient creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.

Stable outlook indicates that there are no anticipated reasons to change rating in the course of the year.

Factors maintaining the credit rating

the issuer’s experience in investing and construction sector: 3 buildings with total area of 14200.0sq.m. have been commissioned;

residential building #1 (I stage), located at Panfilova Str., Donetsk, which premises shall be transferred according to the C series housing bonds, has been commissioned;

construction object, located at Artema Str., Donetsk, which premises shall be transferred according to the D series housing bonds, is at completion phase.

Factors constraining the credit rating

negative value of the issuer’s equity (UAH 6.6m as of September 30, 2009);

negative trends in Ukraine’s real estate market;

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