OREANDA-NEWS  On 13 October Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaBB from uaBBB- (uaBBB minus) the long-term credit rating assigned to registered housing bonds (series D-J) issued by Kiev-based Solidarnost LLC (`issuer` or `company`). The amount of the issue is UAH60.5m due Jan. 23, 2009. The rating outlook has been changed to stable. The company`s principal activity is investing and construction. Today the company constructs a residential building with installed social facilities located in the city of Kiev. To revise the rating Credit-Rating considered issuer`s financial statements for 2Q2008 and its other inside information.

An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.

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

Factors maintaining the credit rating

The issuer has experience in construction market and in leasing commercial and social premises: starting from 1995 the issuer has built 4 buildings of 35.3K sq.m. total floor area.

The building located 53-б Geroiv Stalingrada Av., Kiev is on the stage of completion (the bonds of series D-J are to be redeemed with residential and non-residential premises in this building).

Factors constraining the credit rating

The issuer suffers from imperfect system for scheduling of building commissioning.

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

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