OREANDA-NEWS. On 12 February 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine assigned a long-term credit rating of uaB to UAH44.1m 3-year registered housing bonds (B-E series) to be issued by Vinnytsya-based Vinnytsyamiskbud (`Issuer` or `company`). The company`s principal activity is investing and construction. Today the company constructs a multistoried residential building with installed facilities, which is located in the city of Vinnytsya. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2006 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 has experience of a customer in construction of a residential building situated 38, Kyivska st., Vinnytsya. The floor space of the building is 2.4K sq.m.
The bond issue is to be redeemed with the premises in the residential building located Timoschuka st. 4th Stakhanovskiy Lane, city of Vinnytsya, which has been invested 10 per cent (as at December 2007) of the overall project cost.
The Issuer is engaged with organizing and funding the residential and commercial construction in the city of Vinnytsya, where real estate prices and demand have been growing over the past few years.

Factors constraining the credit rating
The Issuer does not have experience in housing bonds redemption.
The face value of the bond issue of UAH44.1m exceeds 2.5x the Issuer`s asset balance of UAH17.3m as of Sep. 30, 2007.
Issuer`s negative equity of UAH(-)2.6m as of Sep. 30, 2007.
Instability in legislation and tax environment controlling both the construction industry and project financing.