OREANDA-NEWS. On 13 May 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBB- (uaBB minus) to registered housing bonds (series A,B) to be issued by Odessa-based Grani LLC (`issuer` or `company`). The amount of the issue is UAH50.3m, with 1 Ѕ-year original maturity. The company`s principal activity is investing and construction. Today the company implements 2 investment and construction projects located in the city of Odessa. In the course of analysis Credit-Rating considered issuer`s financial statement for 2003-2007 as well as its other inside information.

An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly 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 is incorporated with Grani Investments Group, which companies focus on construction and have experience in construction and reconstruction.
The volume of investments in the construction of a residential building located in Malinovskogo St., Odessa, which premises to redeem the bond issue, is UAH3.3m or 6% of the project`s estimated cost.

Factors constraining the credit rating
Risks imposed by redistribution of cash flows within the group neglecting issuer`s interests.
Size of prospective projects, in fact by 2010 the issuer plans to build and reconstruct a.75K sq.m. of premises worth over UAH226m.

Neither the issuer nor the group`s companies have experience in residential construction and housing bonds redemption.

The size of the upcoming issue of UAH50.3m exceeds issuer`s assets of UAH17m and equity of UAH0.8m as of Dec. 31, 2007.

Instability in legislation and tax environment controlling both the construction industry and project financing.