OREANDA-NEWS. January 26, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine, has today announced that it assigned a long-term credit rating of uaCCC to the Kiev-based Investment and Construction Group LLC. Besides, the agency assigned a long-term credit rating of uaB- (uaB minus) to the registered housing bonds (series B, C) to be issued by the Kiev-based Investment and Construction Group LLC (‘issuer’ or ‘company’). The amount of the issue is UAH16m, due Nov. 30, 2011. The ratings’ outlook is stable. The company’s core business is investing and construction. Today the company constructs a residential complex with installed social facilities and an underground parking garage, located in the city of Kiev. In the course of analysis Credit-Rating considered issuer’s financial statements for 2004-2008 and 9M2009 and its other inside information.

An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.

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).

Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.

Factors maintaining the credit rating of Investment and Construction Group LLC:

financial support from the non-resident.

Factors constraining the credit rating of Investment and Construction Group LLC:

high debt burden.

informational non-transparency.

lack of experience in investing and construction activities.

ongoing negative trends in Ukraine’s real estate sector.

Factors maintaining the credit rating of Investment and Construction Group LLC’s debt instrument:

financial support from the non-resident

the amount of funds invested in construction of the residential complex with installed social facilities and an underground parking garage, located 17-23 Gonchara Str., Kiev (as of September 30, 2009 the amount of implemented construction was UAH 72.1m; growth for 3Q2009 – UAH8.5m), which premises to redeem the upcoming bond issue.

Factors constraining the credit rating of Investment and Construction Group LLC’s debt instrument:

the proprietary rights for the premises in the aforementioned residential complex are pledged as a security for a bank loan.

the issuer does not have necessary experience in investing and construction, neither in redemption of housing bonds.

informational non-transparency.

ongoing negative trends in Ukraine’s real estate sector.

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