OREANDA-NEWS. November 3, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it assigned a long-term credit rating of uaBBB to a private issue of interest-bearing bonds (series W) issued by Kiev-based Arkada-Fond Mortgage Company LLC (‘issuer’ or ‘company’) for the amount of UAH300m due August 23, 2012. The outlook on the rating is stable. In the course of the rating procedure Credit-Rating considered issuer’s financial statements for 2005-2009 and 1H2010 and its other inside information.

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

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

Factors maintaining the credit rating

The issuer is capable of raising necessary funds from Arkada Joint-Stock Bank PJSC (rated uaBBB) in exchange of purchased loans, because of close operating links with the bank.

Factors constraining the credit rating

Issuer’s dependency upon Arkada Joint-Stock Bank PJSC combined with poor diversification of issuer’s investments, which under progressively deteriorating environment in the stock market and real estate sector may considerably impair cash receipts necessary for settlements on own obligations.

Low indicators of issuer’s performance efficiency.

Absence of supervision over quality of the core assets (which is the primary source of cash receipts for settlements by issuer’s obligations) from the bank and supervisory authorities, which significantly raises credit risks under deteriorating environment in the real estate sector.