OREANDA-NEWS. December 29, 2009. Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaB from uaBB- (uaBB minus) the long-term credit rating assigned to registered housing bonds (series A-C) issued by Simferopol-based UBK LLC (‘issuer’ or ‘company’). The outlook on the rating is negative. The amount of the issue is UAH11.6m, with 2-year original maturity. The company’s principal activity is investing and construction. Today the company constructs a recreational complex located in the city of Alupka, in Crimea. To revise the rating Credit-Rating considered issuer’s financial statements for 3Q and 9M2009 and its other inside information.

An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions.

Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.

Factors maintaining the credit rating

The issuer’s participants are associated with Professional LLC, which has experience of construction of over 54K sq.m. of residential and non-residential premises and which is the general contractor of the recreational complex located 3, Dvortsove Shosse, Alupka, which premises to redeem the bonds of series A, B, and C.

Factors constraining the credit rating

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

The pace of construction works at the above mentioned recreational complex.

Poor issuer’s performance indicators, which has been recorded in the past few years.

Ongoing negative trends in Ukraine’s real estate sector.

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