OREANDA-NEWS  On 19 September Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaK4 to registered housing bonds (series A) to be issued by Donetsk-based Ukrteplotsentral LLC (`issuer` or `company`). The amount of the issue is to be UAH12.1m, with 1-year original maturity. The company`s principal activity is supply of steam and hot water, and investing and construction. Today the company constructs a multi-storied residential building located in the city of Donetsk. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 and 1H2008 as well as its other inside information.

An obligor or a debt liability bearing uaK4 short-term rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. The obligor`s financial condition is insufficient to deter any foreseeable risks in the short-term period.

Factors maintaining the credit rating

The construction readiness of the residential building located 100, Bakinskih Komissarov Str., Donetsk, which premises to redeem the bond issue, is 60.4% as of Jul. 31, 2008.

Factors constraining the credit rating

The issuer does not have experience in investing and construction, neither in redemption of housing bonds.

The amount of the bond issue of UAH12.1m exceeds the size of the issuer`s equity of UAH0.3m as of Jun. 30, 2008.

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