OREANDA-NEWS. On 29 December 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to registered housing bonds (series A) to be issued by Odessa-based Technical Association DUK LLC (`issuer` or `company`). The amount of the issue is UAH18.8m due Jan. 31, 2014. The company`s principal activity is investing and constriction. Today the company as a customer constructs a residential building located in the city of Odessa. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 9M2008 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.

Factors maintaining the credit rating

The issuer has experience within GEFEST group, which companies has constructed estate properties of over 60K sq.m. located in different Ukraine`s regions.

Factors constraining the credit rating

Ongoing negative trends in Ukraine`s real estate sector, which curbs access to funding.

The construction of a residential building located 13A, Frantsuzskyi Blvrd., city of Odessa, which premises to redeem the bond issue, is currently on the initial stage.

The issuer does not have experience in redemption of housing bonds.

The amount of the upcoming bond issue of UAH18.8m is in excess of issuer`s equity of UAH6.3m as of Oct. 31, 2008.

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