OREANDA-NEWS. On 30 May 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a short-term credit rating of uaK4 to registered housing bonds to be issued by Yalta-based Kryminvestbud-S.M. LLC (`issuer` or `company`). The amount of the issue is UAH31.8m, with 5-month original maturity. The company`s principal activity is investing and construction. Today the company constructs a multi-storied residential building located in the borough of Gurzuf (Autonomous Republic of Crimea). In the course of analysis Credit-Rating considered issuer`s financial statements for 2006-2007 and 1Q2008, as well as its other inside information.

An obligor or a debt liability bearing uaK4 short-term rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. The obligor`s financial condition is insufficient to deter any foreseeable risks in the short-term period.

Factors maintaining the credit rating

The issuer has invested UAH25.9m or 80% of the project`s estimated cost to construction of the multi-storied Gurzuf-based residential building, which premises to redeem the bonds issue.

Urbek LLC, which is the construction`s general contractor, has experience in construction activities and operates necessary production facilities.

The real estate prices and demand have been constantly growing in the southern coast of Crimea over the past few years.

Factors constraining the credit rating

The issuer does not have experience in investment and construction, neither in housing bonds redemption.

The amount of the bond issue of UAH31.8m is in excess of the issuer`s equity of UAH1.1m as of March 31, 2008.

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