OREANDA-NEWS  On 17 November Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB- (uaB minus) to registered housing bonds (series A-C) to be issued by Dnepropetrovsk-based Eifel LLC (`issuer` or `company`). The amount of the issue is to be UAH65.6m due March 31, 2011. The company`s principal activity is investing and construction. Today the company reconstructs a building and apartments in the city of Dnepropetrovsk. In the course of analysis Credit-Rating considered issuer`s financial statements for 2006-2007 and 1H2008 and 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

The amount of funds invested in construction of youth sport school (with reconstruction of the existing building) and of apartments located in 15Г, Plekhanova Str. in the city of Dnepropetrovsk, which premises to redeem the bond issue, is UAH8.8m as of Oct. 7, 2008 or 13% of the project`s cost.

Factors constraining the credit rating

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

The size of the upcoming bond issue of UAH65.6m exceeds issuer`s amount of assets of UAH2m as of June 30, 2008.

Issuer`s detrimental performance in 2006-2007 and 1H2008, and its negative equity of UAH0.2m as of June 30, 2008.

Negative trends in Ukraine`s real estate market.

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