OREANDA-NEWS. On 8 February 2008 was announced, that Credit-Rating, a nationally recognized credit rating agency in Ukraine assigned a long-term credit rating of uaBBB to UAH80.9m 1-year registered housing bonds (L2-B4 series) to be issued by Kharkiv-based Trest Zhytlobud-1 OJSC (Issuer or company). Credit-Rating has also assigned a long-term credit rating of uaBBB to UAH100m 9-year registered discount bonds (C4 series) issued by the company. The outlook on both ratings is Positive. The Issuers principal activity is investing and construction. Today the company implements 11 construction projects all located in the city of Kharkiv. In the course of analysis Credit-Rating considered Issuers financial statements for 2002-2006 and 9M2007 as well as other inside information furnished by the company.

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

A Positive outlook indicates that there is a possibility to upgrade the rating in the course of the year, on the condition that positive tendencies are maintained and that current risks are reduced.

Factors maintaining the credit rating
The Issuer has experience in conduction of construction and mounting works, in fact the Issuer has delivered over 250K sq.m. of residential premises over the 10 past years.
The Issuer owns production facilities and structural subdivisions that empower the Issuer to supply the construction process on almost all stages.
Issuers lucrative performance in 2003-2006 and 9M2007: the undistributed profit made up UAH36.8m as of Sep. 30, 2007.
High-skilled Issuers management team, which enjoys a significant experience in both the industry and the company.

Factors constraining the credit rating
Issuers performance is contingent on size of projects and of order portfolio, which are constrained among other factors by competition on the constrcution market.
Instability in legislation and tax environment controlling both the construction industry and project financing.