OREANDA-NEWS. On 15 May 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaCCC from uaBB the long-term credit rating assigned to Kiev-based Karavan LLC (`issuer` or `company`) and its registered coupon bonds (series C) for the amount of UAH130m, with 3-year original maturity. The rating has been simultaneously removed from Rating Watch List. The outlook on the rating is negative. Credit-Rating has also suspended the long-term credit rating assigned to coupon bonds (series A) for the amount of UAH30m following the bonds` maturity.

The rating action is in response to the fact that the company has not met in full its commitments on series A bonds, which redemption had to occur on May 6, 2009. Further changes of company`s ratings will be contingent upon successful negotiation with creditors on debt restructuring and its further timely repayment.

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

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.