OREANDA-NEWS. On 4 February 2008 was announced, that Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaA (provisional) to UAH100m 5-year registered coupon bonds (A and B series) to be issued by Kiev-based PLANETA-BUD CJSC. The company`s principal activity is investing and construction. Today the company implements a number of construction projects in the city of Kiev and in Kiev Oblast. 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 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.

Factors maintaining the credit rating
The Issuer is an entity associated with legally informal PLANETA group of companies, which has operated since 1991 in industrial, commercial and residential construction, specifically the Issuer has rendered services for UAH1.5bn over 2003-2006 and 9M2007.
The Issuer owns production facilities and structural subdivisions, which empowers the company to supply the construction process on almost all stages and to partially supply the process with the own-produced materials.
The size of the issue of UAH100m is 121 per cent covered with the Issuer`s statutory fund of UAH121m.
The bond issue is underwritten by SMK PLANETA-MOST, which is the leading Ukraine`s company in bridge engineering. The net sales in 2006 and 9M2007 made up UAH293.6m and UAH305.1m, the sales profitability 8.5 and 15.5 per cent respectively; the undistributed profit accounted for UAH77.3m as of Sep. 30, 2007.
The Issuer enjoys an order portfolio scheduled through 2010 with the estimated cost of UAH2.5bn: the residential and commercial premises of over 380K sq.m. are planned to be delivered.
Issuer`s transparency and openness.

Factors constraining the credit rating
Issuer`s volatile performance in the past few years.
The redemption of the bond issue planned for 2012-2013 is contingent upon fulfillment of the PLANETA group`s scheduled indicators, which may be affected by environment in the real estate market.
Instability in legislation and tax environment controlling both the construction industry and project financing.