OREANDA-NEWS. May 4, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaCCC from uaB 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 stable. The company’s principal activity is investing and construction. Today the company constructs a recreational centre in the city of Alupka in Crimea. To revise the rating Credit-Rating considered issuer’s financial statements for 4Q2009 and full 2009 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.

Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.

Factors maintaining the credit rating

The issuer is associated with Professional LLC which has built over 54K sq.m. and acts as a general contactor of construction of the recreational centre located 3, Dvortsovoye Shosse in Alupka, which premises to redeem the bond issue.

The construction readiness of the above mentioned recreational centre was 46% as at Dec. 31, 2009.

Factors constraining the credit rating

A halt in construction works of the recreational centre.

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

Issuer’s low 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.