OREANDA-NEWS. On 14 January 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine, announced that it assigned a long-term credit rating of uaBBB+ (uaBBB plus) to Kyiv-based Karavan LLC (`company`). The company`s principal activity is retail trade with foodstuffs and nonfoods at leased commercial premises in Kiev-based Karavan trade and entertainment centre. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 and 9M2008 and its other inside information.

An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

The company is incorporated with Karavan group of companies, which companies operate in the sectors of development of commercial real estate.

The company`s key figures have grown over the past few years, being accompanied by the company`s enhanced performance efficiency.

Factors constraining the credit rating

The Karavan outlet chain is developed insufficiently comprising 6 units as of Sep. 1, 2008.

Risks imposed by redistribution of cash flows with the group neglecting company`s interests.

High specific gravity of foreign currency denominated obligations in the company`s loan portfolio, which may increase the company`s debt burden under devaluation of the national currency.

Opacity with regard to probability of refinancing the company`s obligations under adverse environment in the financial market and high specific gravity of short-term debt obligations in the overall volume of company`s debts.

Growing competition in foodstuff retail sector coupled with shrinking population`s incomes.