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 uaCCC to registered discount bonds (series A-AB) to be issued by Sevastopol-based Talassa Private Venture (`issuer` or `company`). The amount of the issue is UAH475.1m due Apr. 30, 2013. The company`s principal activity is investing and construction. Today the company as a customer and investor constructs a hotel and recreational complex located in the city of Sevastopol. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 as well as its other inside information.

An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.

Factors maintaining the credit rating

Construction Company Forum Krym LLC has participated in construction of the 1st phase of the hotel and recreational complex located near the Pobedy Park, Sevastopol. This company has experience in construction, in fact in the past 5 years it has built 2 hotel complexes of 78K. sq.m. total floor area.

The prices and demand for the recreational real estate have been constantly growing over the past few years in Sevastopol.

Factors constraining the credit rating

Issuer`s meeting its obligations on the bond issue is contingent upon successful construction of the above mentioned hotel and recreational complex, which is currently on the initial stage of construction, thereat, the issuer does not have experience in implementation of such projects.

The issue size of UAH475.1m exceeds the amount of issuer`s assets of UAH5.5m and equity of UAH0.1m as of Dec. 31, 2007.

Issuer`s insufficient transparency and openness.

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