OREANDA-NEWS. On 13 January 2009 was 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 registered coupon bonds (series B) issued by Cherkasy-based Cherkasy Battery Farm LLC (`issuer` or `company`). The amount of the issue is UAH30m, with 3-year original maturity. The company`s principal activity is production and supply of broiler meat. To revise the rating Credit-Rating considered issuer`s financial statements as at Sep. 30, 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.

Factors maintaining the credit rating

Issuer`s strong market positions in the regional meat market.

Factors constraining the credit rating

Issuer`s eroded liquidity under turbulences in the financial market and opacity with regard to probability of refinancing issuer`s obligations, which has already entailed issuer`s untimely repayment of series A bonds and failure to meet obligations on series B bonds.

A significant share of issuer`s assets is pledged as security.

Increased competition in the Ukraine`s meat market coupled with downward trend in industry`s profitability.

Issuer`s vulnerability to changes in state agricultural policy.