OREANDA-NEWS. On 26 June 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to registered housing bonds (series A) to be issued by Kharkiv-based Batris LLC (`issuer` or `company`). The amount of the issue is UAH199.2m, with the 2-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a multi-functional centre with the installed underground parking garage and residential premises located in the city of Kharkiv. 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 uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions.

Factors maintaining the credit rating

The issuer has already invested UAH46.7m or 24% of the project`s estimated value in the construction of the multifunctional complex, located Bannyi Lane, Kahrkiv, which premises to redeem the bond issue.

The real estate prices and demand have been growing over the past few years in the city of Kharkiv.

Factors constraining the credit rating

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

The size of the upcoming bond issue of UAH199.2m exceeds the amount of issuer`s assets of UAH59m as of March 31, 2008 coupled with the issuer`s negative equity of (UAH10m).

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