OREANDA-NEWS. On 19 August 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine, assigned a long-term credit rating of uaB to UAH16.4m 2-year upcoming registered housing bonds (K-P series) to be issued by Kiev-based Ketam 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 office premises in the city of Rovno. 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.

Factors maintaining the credit rating:

The Issuer has experience in investment and construction activities: the Issuer as the owner constructed an apartment building in 5b Lermontova street in Rovno of the total floor space 2.06K square meters; the 1st turn of the apartment buildings complex in 46/48 Dvoretskaya street in Rovno (premises in which shall be given under series A, C, D bonds issue) is 90% complete;

Factors constraining the credit rating:

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

The construction of 3rd turn of apartment buildings complex in 46/48 Dvoretskaya street in Rovno, premises in which shall be given the upcoming bonds issue is at the initial stage;

Nominal amount of the three bonds issues, including the upcoming issue (UAH37.9m) exceeds the equity of the Issuer (UAH1.7m) as of March 31, 2008;

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