OREANDA-NEWS. On 19 February 2009 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) issued by Kiev-based Holding Company Systemni Investytsiyi LLC (`issuer` or `company`). The amount of the issue is UAH85.2m due Oct. 1, 2010. The company`s principal activity is investing and construction. Today the company constructs a residential building with installed facilities and a parking garage located in the city of Kiev. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 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 the residential building with installed facilities and a parking garage located 37B, Bakinska Str., Kiev, premises in which to redeem the bond issue, is UAH13.1m or 15.4% of the project`s estimated cost as of June 30, 2008.

The project involves Evrostroy LLC, which is the project`s general contractor and has a significant experience in construction.

Factors constraining the credit rating

Ongoing negative trends in Ukraine`s real estate sector.

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

The size of the bond issue of UAH85.2m exceeds the amount of issuer`s assets of UAH64.9m and equity of UAH18.5m as of June 30, 2008.

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