OREANDA-NEWS  On 07 October Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB- (uaBBB minus) to registered housing bonds (series E-F) to be issued by Kiev-based Firma Astarta-Centre OJSC (`issuer` or `company`). The amount of the issue is UAH41.8m, due Nov. 15, 2009. The company`s principal activity is investing and construction. Today the company as investor constructs a number of residential buildings 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 uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by 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 has experience in construction funding via issuance of housing bonds and in their redemption, in fact on the previous 4 bond issuances the issuer has delivered premises of 11.7K sq.m. in the building located 30/39, Schekavitska Str. Kiev (1st and 2nd phases).
The construction readiness of the 3 rd phase of the residential complex located 30/39 Schekavitska Str., Kiev, which premises to redeem the bond issue, is 80% as of June 30, 2008.

Factors constraining the credit rating

Issuer`s volatile performance indicators.

High issuer`s debt burden: the ratio of its net debt to the EBITDA for the financial year ended on June 30, 2008, is 4.9.

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