OREANDA-NEWS  On 16 September Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to registered housing bonds (series A-C) to be issued by Kiev-based Grad Invest LLC (`issuer` or `company`). The amount of the issue is to be UAH262.4m, with 3 1/2-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a residential and office complex with installed commercial and catering facilities and an underground parking garage located in the city of Kiev. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 and 1H2008 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 construction of the mentioned complex, located 40, N.Ostrovskogo str., Kiev (which premises to redeem the bond issue) involves Kyivbudkom CJSC as a general contractor, which has significant experience in construction.

Factors constraining the credit rating
The issuer does not have experience in investment and construction, neither in redemption of housing bonds.

The size of the upcoming bond issue of UAH264.2m exceeds significantly the amount of issuer`s assets of UAH13.5m and of equity of UAH2.3m as of June 30, 2006.

The mentioned project is currently on the initial stage.

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