OREANDA-NEWS. On 12 May 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a short-term credit rating of uaK2 to upcoming issue of registered FREO certificates Nova Bohdanivka-2 (series A, B) , which manager is Kiev-based Arkada JSCB (`issuer`). The amount of the issue is UAH53.7m due Sep. 7, 2009. The funds raised from the certificates` placement are to be aimed at financing construction of houses located in Nova Bohdanivka cottage village, which is situated in the borough of Bohdanivka, Brovary District of Kiev Oblast. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 as well as its other inside information.

A credit rating of uaK2 is a short-term, investment grade rating, indicating a STRONG CAPACITY to pay both interest and principal on the given debt liability on a timely basis and in full, as the cash flows and liquidity of the obligor are adequate to deter any foreseeable risks.

Factors maintaining the credit rating
The project involves companies, which are associated with Kyivmiskbud JSHC, which is Kiev`s leading construction company having production facilities, which empower the construction process to be supplied on almost all stages.
The issuer has experience of a fund manager in attraction of funds from individuals and entities, in fact it has so far created 23 funds for construction funding and 2 real estate operations funds, which have attracted over UAH5.5bn as of 2007-end.

Factors constraining the credit rating
Instability in legislation and tax environment controlling both the construction industry and project financing.