OREANDA-NEWS  On 10 November Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB (provisional) to registered housing bonds (series A-R) to be issued by Dnepropetrovsk-based Astarta-7 LLC (`issuer` or `company`). The amount of the issue is to be UAH63.6m, with 4-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a multi-storied residential building located in the city of Dnepropetrovsk. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 and 1H2008 and its other inside information.

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

Factors maintaining the credit rating

The upcoming bond issue is guaranteed by Ukrselkhozprom LLC, which annual operating profit has amounted to over UAH20m, with the volume of its retained earnings being at UAH284.3m as of June 30, 2008.

Factors constraining the credit rating

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

The construction of the residential building located near #68, Zaporizhske Shosse, Dnepropetrovsk, which premises to redeem the bond issue is currently on the initial stage.

Negative trends in Ukraine`s real estate and construction sector.

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