OREANDA-NEWS  On 03 October Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaA+ (uaA plus) to registered housing bonds (series D-F) to be issued by Kiev-based Kyivmiskbud-1 CJSC (`issuer` or `company`). The amount of the issue is UAH70.5m due on Dec. 5, 2009. The company`s principal activity is investing and construction. Today the company implements 12 construction projects, with the majority of which located in the city of Kiev. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 1H2008 as well as its other inside information.

An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

The Issuer is associated with Stolytsya Corporation, which participants are vertically integrated and render a full range of construction and funding services (Stolytsya Corp. is one of three biggest construction companies in Kiev by both revenues and homes delivered).

Issuer`s net sales and net profit have been growing over 2004-2007 with the sales profitability being always above 20 per cent.

The management team of Stolytsya Corporation is highly skilled enjoying significant experience in construction industry.

Factors constraining the credit rating

The issuer does not have detailed plans for implementation of 1st phase for construction of Leski-2 micro district located in the city of Mykolayiv, where premises in the residential premises intend to redeem the bond issue.

Risks imposed by size of the projects coupled with decline in demand for real estate.

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