OREANDA-NEWS. On 17 March 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB+ (uaBBB plus) to UAH727.2m 5-year registered housing bonds (AD-AZ series) to be issued by Kiev-based LIKO-HOLDING LLC (`Issuer` or `company`). The company`s principal activity is investing and construction. Today the company constructs residential buildings with underground parking garages and social facilities located in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 9M2007 and its other inside information.

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 plus `+` and a minus `-` signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating
The Issuer has experience in financing the construction with the funds raised from bond issuances, as well as in their redemption.
The Issuer owns production facilities and structural subdivisions, which empower the Issuer to supply the construction on almost all stages.

Factors constraining the credit rating
The Issuer suffers from inefficient homes delivery system.
The issue size of UAH727.2m exceeds significantly Issuer`s equity of UAH1.4m as of Oct. 1, 2007.
Issuer`s detrimental performance stemming from redistribution of cash flows within the holding, in fact the Issuer`s net loss in 2006 made up UAH372.8K with that for 9M2007 amounting to UAH2.8m
Instability in legislation and tax environment controlling both the construction industry and project financing.