OREANDA-NEWS. On  26 February 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine assigned a long-term credit rating of uaCCC to UAH 109.8m 3-year registered housing bonds (A-F series) to be issued by Kiev-based Transstroy Investment and Consulting Center LLC (`Issuer` or `company`). The company`s principal activity is investing and construction. Today the company carries out a project for the construction of an apartment building with underground parking place in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2002-2006 and 9M2007 as well as other inside information furnished by the company.

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 Issuer has all permitting documents for the construction of an apartment building located in Kramskogo Str., Kiev, the premises of which shall redeem the bond issue;
Price growth for residential and commercial real estate in the city of Kiev.

Factors constraining the credit rating
The Issuer has no experience both in carrying out the investment and construction projects and in redemption of housing bonds;
The project for the construction of an apartment building located in Kramskogo Str., Kiev is at initial stage;
The amount of upcoming bond issue (UAH 109.8m) exceeds the Issuer`s assets (UAH 19.7 as of September 30, 2007);
The Issue has high debt load (as of September 30, 2007 bank loan liabilities amounted to UAH 17.6m or 89.3% of the liabilities), negative value of the equity (UAH 1.6m) and there are no revenues from the core business;
Instability in legislation and tax environment controlling both the construction industry and project financing.