OREANDA-NEWS. On 15 May 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBB to registered housing bonds (series A) issued by Kharkiv-based SU-15 LLC (`issuer` or `company`). The amount of the issue is UAH41.8m, with 2-year original maturity. The company`s principal activity is investing and construction. Today the company as a customer and investor constructs a residential building located in the city of Kharkiv. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 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.

Factors maintaining the credit rating

Construction Group International LLC, which is affiliated with the issuer via a participant, has experience in construction (as a general contractor it has built and delivered over 100K sq.m.) and production facilities which empower the construction process to be supplied on almost all stages.

The amount of investments to the construction of the residential building located 31, 23th August St., Kharkiv, which premises to redeem the bond issue makes up UAH32.3m or 37% of the project`s estimated cost.

Factors constraining the credit rating

The issuer does not have experience in housing bonds redemption.

The mentioned unfinished building, which premises to redeem the bond issue is pledged as security for a bank loan.

The issue size of UAH41.8m exceeds the amount of issuer`s assets of UAH31.1m and equity of UAH13.9m as of Dec. 31, 2007.

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