OREANDA-NEWS  On 10 October 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 bonds (series A-E) issued by Kiev Oblast-based Construction Company Citadel LLC (`issuer` or `company`). The amount of the issue is UAH178.9m due June 30, 2008. The company`s principal activity is investing and construction. Today the company as a customer constructs a residential complex located in the city of Boryspil, Kiev Oblast. To revise the rating Credit-Rating considered issuer`s financial statements for 4Q and full 2007 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.

Factors constraining the credit rating

Issuer`s information opacity and intransparency.

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

A delay of over 1 year duration, which occurred in commissioning of a residential complex located between Dzerzhinskogo, Kosiora and Franko streets in the city of Boryspil.

Issuer`s low performance indicators recorded in the past few years.

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