OREANDA-NEWS. On 07 June 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaCC to registered coupon bonds (series A) to be issued by Yalta-based Firma Sharm PV (`issuer` or `company`). The amount of the issue is UAH10m, due May 26, 2058. The company`s principal activity is construction and servicing a trade centre, which is located in the borough of Okhotnichye (Yalta, the Autonomous Republic of Crimea). 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 uaCC credit rating is characterised with the VERY HIGH DEFAULT POSSIBILITY.

Factors constraining the credit rating

The issuer has a right to conduct construction works on a land plot of 2.794 ha, located near the upper station of Miskhor-Ai-Petri rope-way, in the borough of Okhotnichye (Yalta, the Autonomous Republic of Crimea).

Factors constraining the credit rating

There are suits regarding justification of allocation of the mentioned land plot to the issuer, and legitimacy of location of estate property therein, with its leasing being the issuer`s principal income source.

The bond issue size of UAH10m is in excess of issuer`s equity of UAH6.1m as of Dec. 31, 2007.

The nature of the bond issue does not correlate with typical characteristics of coupon bond issuances.

The issuer does not have a development strategy.

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