OREANDA-NEWS  On 12 December Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB to registered coupon bonds (series A) issued by Kiev-based NIKO INVEST LLC (`issuer` or `company`). The amount of the issue is UAH100m, with 5-year original maturity. Today the company implements 10 investment and construction projects located in different Ukraine`s regions. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 and 1H2008 and its other inside information.

An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.

Factors maintaining the credit rating

The issuer`s key figures have grown over the past few years, specifically the net revenue from service rendering increased to UAH31.7m recorded for 2007 as compared with that of UAH1.2m recorded for 2003; the issuer`s net profit grew to UAH10.8m from UAH0.04m, with the EBITDA advanced to 48% from 17.7%.

The issuer is associated with NIKO Concern, which is one of the biggest Ukraine`s car importers.

Factors constraining the credit rating

Issuer`s significant debt burden: as of June 30, 2008 the ratio of the company`s net debt to its EBITDA recorded in the FY ended on June 30, 2008 was recorded at 10.2x.

The major part of issuer`s property is pledged as security for bank loans.

The issuer does not have a set development strategy.

Issuer`s opacity and intransparency.