OREANDA-NEWS. On 09 July 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaCCC from uaB- (uaB minus) the long-term credit rating assigned to registered housing bonds (series A, B and C) issued by Kiev-based INVEST-FINANCE LLC (`issuer` or `company`). The amount of the issues is UAH39.3m (A,C) and UAH6.5m (B), with 2-year original maturity. The outlook on the rating is stable. The company`s principal activity is investing and construction. Today the company constructs a residential building with installed underground parking garage and public facilities, located in the city of Kiev. To revise the rating Credit-Rating considered issuer`s financial statements for 1Q2008 as well as 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.

Factors maintaining the credit rating

The residential building is constructed in Kiev`s centre, where demand for real estate is stably high.

Factors constraining the credit rating

The delay in implementation of the project on the stage of designing, in fact, as at Jun. 18, 2008 the term of delay was 10 months (the planned term for construction is 14 months) .

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

Issuer`s detrimental performance over the past few years: the uncovered loss made up UAH (1.2m).

The issuer`s total liabilities on 2 bond issues of UAH45.8m almost 10x exceed the amount of issuer`s assets of UAH4.7m as at Mar.31, 2008.

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