OREANDA-NEWS. December 13, 2007. Credit-Rating, a nationally recognized credit rating agency in Ukraine has assigned a short-term credit rating of uaK3 to UAH22.8m 4-month issue of registered housing bonds (D series) to be issued by Kiev-based Firma Astarta-Centre LLC, the agency's press service reports. The company's primary activity is construction for further sale or rent, disposal of real estate and sale of proprietary rights. Today, the company as investor constructs residential buildings at 30/39 Schekavitska str., Kiev. 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 uaK3 rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. The obligor's financial condition suffices to deter any foreseeable risks in the short-term period.

Factors maintaining the credit rating:

The Issuer has experience in construction funding at the expense of housing bonds issues, as well as in their redemption, in fact the Issuer has delivered 6,694 sq.m. of premises on 3 previous issues for UAH30.8m in the building situated 30/39 Schekavitska str., Kiev (1st stage). The Issuer is incorporated with the legally informal Astarta-Kiev group of companies, which operates in different branches of the national economy. The planned issue is to be redeemed by premises in 30/39, Schekavitska str., Kie (2nd stage) with 85 per cent construction readiness as of Oct. 1, 2007.

Factors constraining the credit rating:

Issuer's detrimental performance over five years up to 2006. The Issuer has attracted short-term loans in the current year, the liabilities on which of UAH35.5m exceed 1.2x the Issuer's equity of UAH29.2m. Issuer's performance within the group imposes risks of redistribution of cash flows between the group's companies and makes the Issuer vulnerable to overall group's performance. Instability in legislation and tax environment controlling both the construction industry and project financing.