OREANDA-NEWS  On 17 December Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaB- (uaB minus) from uaBB- (uaBB minus) the long-term credit rating assigned to registered housing bonds (series A-H) issued by Kharkiv-based Grado LLC (`issuer` or `company`). The outlook on the rating is negative. The company`s principal activity is investing and construction. Today the company constructs 2 residential buildings located in Kharkiv`s suburb. To revise the rating Credit-Rating considered issuer`s financial statements for 3Q and 9M2008 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

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 has experience in investing and construction projects: in fact, the issuer has built 3 residential buildings of 5.2K sq.m. floor area.

Factors constraining the credit rating

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

Suspension of construction of residential buildings located 1-3, Energticheskaya Str., the borough of Solonitsovka, Kharkiv Oblast, which premises are to redeem the bonds of A-H series.

Poor issuer`s performance indicators 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.