OREANDA-NEWS  On 17 September Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to registered coupon bonds (series A) issued by Kiev-based UKRTECHNOPROM Holding Company CJSC (`issuer` or `company`). The amount of the issue is UAH50m, with 5-year original maturity. The company`s principal activity is wholesale trade with heating equipment. 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 strong market positions of ATON group, which incorporates the issuer (the group had a 20% share in the domestic market of industrial and household boilers).

The issuer`s sales rose 3.1 times to UAH146.2m over 2005-2007.

Stable demand for heating equipment in the domestic market.

Factors constraining the credit rating

Risks imposed by corporate governance, namely by significant volume of transactions with affiliated parties and by absence of consolidated financial statements.

Issuer`s significant debt burden: as of March 31, 2008 the ratio of the net debt to the EBITDA generated for 12 months made up 4.5x; the issuer`s asset to equity ratio is 6.8% as of March 31, 2008 (exclusive of the planned bond issue).

Low issuer`s performance indicators, in fact the issuer`s operating profitability made up 3.04%, the sales profitability - 0.65% and the profitability of the EBITDA 2.73% recorded in 2007.