OREANDA-NEWS  On 09 September Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaCCC to registered housing bonds (series A-J) to be issued by Kiev-based Construction Innovations and Engineering (CIE) LLC (`issuer` or `company`). The amount of the issue is to be UAH90m due June 29, 2010. The company`s principal activity is investing and construction. Today the company implements 3 construction projects located in Crimea. In the course of analysis Credit-Rating considered issuer`s financial statements for 2006-2007 and 1Q2008 as well as its other inside information.

An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.

Factors maintaining the credit rating

The amount of issuer`s investments in construction of a hotel and recreational complex located in the borough of Koktebel, which premises to redeem the bonds is UAH23m or 19% of the project`s estimated value.
Growth in prices and demand for real estate on the southern coast of Crimea over the past few years.

Factors constraining the credit rating
The issuer has no experience in implementation of investment and construction projects, neither in redemption of housing bonds.
Issuer`s meeting its liabilities on the upcoming bond issue (due on Jul. 30, 2010) is contingent upon timely delivery of the hotel and recreational complex, which is scheduled for July 2010.
The amount of the bond issue of UAH90m exceeds the issuer`s equity of UAH27.4m as of March 31, 2008.
Instability in legislation and tax environment controlling both the construction industry and project financing.