OREANDA-NEWS. On 09 July 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB+ (uaB plus) to registered housing bonds (series A-C) issued by Kiev-based VANT LLC (`issuer` or `company`). The amount of the issue is UAH291.3m, with 4 Ёц-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a residential complex with installed public facilities, non-residential premises and a parking garage, located in the city of Kiev. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

The amount of issuer`s investments in the construction of a residential complex with installed public facilities, non-residential premises and a parking garage located 11A and ¬ў, Yanvarskogo Vosstaniya St. Kiev, which premises to redeem the bond issue (as at March-end 2008) is UAH16.3m or 5% of the project`s estimated cost.

The issuer owns a land plot of 0.8562 ha, where the construction of the above complex is to take place.

The general contractor of the construction is Altis-Holding Corporation, which has experience in construction and owns necessary production facilities.

The prices and demand for estate property in Kiev`s centre have remained stably high over the past few years.

Factors constraining the credit rating

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

The issue size of UAH291.3m exceeds the issuer`s assets of UAH112.4m and equity of UAH49.2m as at March 31, 2008.

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