OREANDA-NEWS. On 22 April 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to registered housing bonds (series A-D) to be issued by Kiev-based A.B.C. LLC (`Issuer` or `company`). The amount of the issue is UAH641.8m, with 6-year original maturity. The company`s principal activity is investing and construction. Today the company as a customer constructs a residential and office centre located in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2007 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.

Factors maintaining the credit rating
The construction of the residential and office centre with installed facilities and underground parking garage located 37/1, Henri Barbusse St., Petchersk District of the city of Kiev, which premises to redeem the bond issue, has been invested UAH48.1m as of end-March 2008.
The real estate prices and demand have been growing over the past few years in the city of Kiev.

Factors constraining the credit rating
The Issuer does not have experience in investing and construction, neither in housing bonds redemption.
The issue size of UAH641.8m exceeds significantly the amount of Issuer`s assets of UAH61.7m and equity of UAH22.7m as of Dec.31, 2007.
Instability in legislation and tax environment controlling both the construction industry and project financing.