OREANDA-NEWS. On 24 June 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB (provisional) to registered coupon bonds (series A) to be issued by Kiev-based Zoloti Vorota Corporation (`issuer` or `corporation`). The amount of the issue is UAH200m, with 3-year original maturity. The corporation`s principal activity is management of companies, wholesale trade with construction materials and rendering other commercial services. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 and 1Q2008 as well as its other inside information.

An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.

Factors maintaining the credit rating

The upcoming bond issue is guaranteed by the corporation`s participants Yugzapaddorstroy OJSC and Stroitelnoye Upravleniye #813 OJSC, which recorded consolidated net sales in 2006-2007 of UAH347.1m and UAH587.8m respectively; and the net profit of UAH16.5m and UAH40.5m respectively; the EBITDA profitability of 8.1% and 10.8% respectively.

The corporation`s participants have necessary experience their sectors: during 2003-2007 the participants conducted works on construction and reconstruction of roads and bridges for the amount of over UAH3.3bn.

The corporation`s participants operate production facilities and structural subdivisions, which empower them to supply the construction process on almost all stages, and to partially supply the construction process with the own-produced construction materials.

The corporation`s participants have an order portfolio scheduled through 2010 of over UAH2.8bn estimated value, in fact the participants are planning to conduct works on construction and extensive repairs of roads of 165 km.

Factors constraining the credit rating

High debt burden of Yugzapaddorstroy OJSC and of Stroitelnoye upravleniye #813: the ratio of potential indebtedness (according to credit lines opened as of March 31, 2008) to the EBITDA (recorded for 2007) is 4.5x.

Low level of corporate governance because of unavailability of the consolidated financial statements.

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