OREANDA-NEWS. On 23 July 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine, assigned a long-term credit rating of uaB to UAH 10m 5-year registered upcoming interest-bearing bonds (B series) to be issued by the Lviv-based Transfavorit Private Company (`Issuer` or `Company`). The company`s principal activity is construction materials transportation and sale of the specialized equipment and spare parts. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2007 as well as other inside information provided by the Company.

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:

Growth of the net sales over the past years, especially in 2007 in 2.1 times up to UAH 17.5m;

Increase in demand for goods and services rendered by the Issuer due to the growth of construction volumes and road repairs volumes in the Western part of Ukraine.

Factors Constraining the Credit Rating:

Expected growth of the debt burden after the B series bonds (UAH 10m) will be offered up to UAH 19.4m that exceeds the 2007 EBITDA index in 17 times;

Most of the Company`s property is pledged;

Negative cash flows from operating activities over the past years.