OREANDA-NEWS. Credit-Rating, a nationally recognized credit rating agency in Ukraine, announced on September 25 it had assigned uaA+ (uaA plus) long-term credit rating to Kiev-based Stolytsya Corporation. The agency has also assigned uaA+ (uaA plus) long-term credit rating to the Corporation`s UAH50 mln 3-year issue of registered coupon bonds (A series). The Issuer is a nonprofit organization, which incorporates companies engaged in construction. Today the Corporation implements or schedules to implement construction projects in the city of Kiev and its suburbs, and in other regions of Ukraine, namely Mykolayiv, Kremenchuk, Vinnitsa, Poltava, Tcherkassy, Kherson. In the course of analysis, Credit-Rating considered information furnished by Issuer`s representatives. An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions. The plus (+) or minus (-) modifier denotes therating`s relative status within major categories.

According to the agency, the factors influencing the credit rating assigned are as follows: The Issuer is a nonprofit organization participated by companies integrated vertically into a vigorous structure and engaged in rendering a wide range of construction and financial services. The Issuer is among 3 biggest construction companies in the city of Kiev by both size of incomes and projects implemented. The upcoming issue is underwritten by Corporation`s participants Trust Kievgorstroy-1 CJSC, Kievgorstroy-1 CJSC and Holding Kievgorstroy-1 LLC, which consolidated undistributed 2006 profit of UAH98.4 mln and almost 2 times exceeds the issue size with their undistributed profit of UAH177.7 mln as of June 30, 2007 over threefold exceeding the issue size. At that, the Issuer`s management has a significant experience in construction including operation within the Corporation.

Factors constraining the credit rating are: Risks imposed by size of projects, in fact the Corporation plans to implement more than 15 investment and construction projects of 1.5+ million sq.m. in 7 upcoming years, which almost threefold exceeds the floor space of the buildings constructed hitherto. Instability in legislation and tax environment controlling both the construction industry and project financing is also among the risk factors.