OREANDA-NEWS  On 18 December Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaCCC to Lugansk-based Villon LLC (`issuer` or `company`). The company`s principal activity is investing and construction. Today the company constructs a multistoried residential building located in the city of Lugansk. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 and 9M2008 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

The issuer participates in investment and construction projects on which all necessary licenses are obtained and a land plot of 0.5574 ha located 12A, Kotsubinskogo Str., city of Lugansk is leased.

Factors constraining the credit rating

Dependency of issuer`s performance upon successful implementation of the project under ongoing negative trends in Ukraine`s real estate sector and no issuer`s experience in implementation of such projects.

Issuer`s detrimental performance in 2005-2007 and 9M2008: the consolidated uncovered loss amounted to UAH0.4m as of Sep. 30, 2008.

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