OREANDA-NEWS. On 15 August 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine, assigned a long-term credit rating of uaB- to UAH30.1m 3-year upcoming registered housing bonds (B-E series) to be issued by Cherkassy-based Renesans Architectural and Construction Centre LLC (`Issuer` or `Company`). The company`s principal activity is investing and construction. Today the company carries out a construction project of apartment buildings complex with the built-in and attached premises of office and trading purpose in the city of Cherkassy. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2007 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 construction object is 80% complete 1st position of the apartment buildings complex in Serzhant Zhuzhoma Street in Cherkassy, premises in which shall be given under series A bonds issue;

Participation of the general contractor Rayagrostroy Cherkasskiy Construction and Installation Cooperative Society, having experience in construction sphere in carrying out project for construction of an apartment buildings complex located in Serzhant Zhuzhoma Street in Cherkassy.

Factors constraining the credit rating:

The Issuer has no experience in bonds redemption by giving appropriate premises to their owners;

The construction of 2nd position of apartment buildings complex, premises in which shall be given the upcoming bonds issue is at the initial stage;

Nominal amount of the two bonds issues, including the upcoming issue (UAH57.7m) exceeds the equity of the Issuer (UAH0.3m) as of March 31, 2008;

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