OREANDA-NEWS. December 12,  2007. Credit-Rating, a nationally recognized credit rating agency in Ukraine has assigned a long-term credit rating of uaB to UAH11.6m worth 1 Ѕ-year issue of registered housing bonds (E-J series) to be issued by Kiev-based KETAM LLC, the agency's press service reports. The company`s primary activity is investing and construction. Today, the company constructs a residential complex with installed social facilities in the city of Rivne. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 9M2007 as well as other inside information furnished by the company.

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 Issuer as investor has experience in construction of a residential building situated 5б, Lermontova str., Rivne of 2.06K sq.m.; the construction readiness of the 1 st stage of the residential complex situated 46/48, Dvoretska str., Rivne (on which the Issuer acts as a customer and issued the first tap of housing bonds) is currently 50 per cent.
The Issuer is engaged with organizing and financing of construction in the city of Rivne , where real estate prices and demand have been growing over the past few years.

Factors constraining the credit rating:

The Issuer has not so far redeemed housing bonds.
The face amount of 2 bond issues, including the upcoming one (both UAH22.4m) exceeds 10.7x the Issuer`s equity of UAH2.1m as of Sep.30, 2007.
The planned issue is to be redeemed by premises in the 2nd stage of the residential complex situated 46/48, Dvoretska str., Rivne, which construction is currently on the initial stage.
Instability in legislation and tax environment controlling both the construction industry and project financing.