OREANDA-NEWS. On 30 December 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaCC from uaB- (uaB minus) the long-term credit rating assigned to registered housing bonds (series A-E) issued by Kiev-based NIKA LTD LLC (`issuer` or `company`). The amount of the issue is UAH98.5m due Dec. 24, 2008. The rating outlook has been changed to stable. The company`s principal activity is investing and construction. Today the company constructs a residential building located in the city of Vyshgorod in Kiev Oblast. To revise the rating Credit-Rating considered issuer`s financial statements for 3Q and 9M2008 and its other inside information.

An obligor or a debt liability with uaCC credit rating is characterised with the VERY HIGH DEFAULT POSSIBILITY.

Factors constraining the credit rating

Delay in construction of a residential building located 4a, Simonenka Str., located in the city of Vyshgorod, Kiev Oblast: in fact the delay made up over 1 year as of end-3Q2008.

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

Issuer`s negative equity of UAH (2.7)m as of Sep. 30, 2008 prompted by issuer`s detrimental performance during the past few years.

Ongoing negative trends in Ukraine`s real estate sector.

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