OREANDA-NEWS. On 24 March 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to UAH16.7m 3-year registered housing bonds (series A-C) issued by Crimea-based Planeta Private Enterprise (`Issuer` or `company`). The company`s principal activity is investing and construction. Today the company as a customer and investor constructs a hotel complex with installed offices, apartments and a shop located in the city of Alushta. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 9M2007 as well as its other inside information.

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

Factors maintaining the credit rating
The bond issue is to be redeemed with premises in the hotel complex located in Baglikova st., city of Alushta, which has been invested UAH6.1m (33.7 percent of the project`s estimated cost).
The project`s general contractor is IMAR LLC it has built and delivered 6 buildings in 2003-2006.
The Issuer is engaged with organizing and funding the construction in the city of Alushta, 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 investment and construction projects, neither in housing bonds redemption.
The issue size of UAH16.7m exceeds 4x the Issuer`s assets of UAH4.2m as of Sep. 30, 2007.
Issuer`s negative equity of UAH5K as of Sep. 30, 2007, which stemmed from Issuer`s detrimental performance, with the Issuer`s uncovered loss making up UAH5K.
Instability in legislation and tax environment controlling both the construction industry and project financing.