OREANDA-NEWS. On 17 March 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaCCC from uaB+ (uaB plus) the long-term credit rating assigned to registered housing bonds (series A, B) issued by Lviv-based LEV LLC (`issuer` or `company`). The amount of the issue is UAH50.4m due Oct. 31, 2009. The outlook on the rating has been changed to stable. The company`s principal activity is investing and construction. Today the company implements 2 projects located in the city of Lviv. To revise the rating Credit-Rating considered issuer`s financial statements for 4Q and full 2008 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 has experience in investing and construction: as a customer and investor the issuer has built a residential building of 2.5K sq.m. located in the city of Lviv, with the construction readiness of another building located 30, Velichkovska Str. (of 12.3K) being 98%.

The construction of a residential building located 10, Lincoln Str., Lviv (which premises to redeem the bond issue of A and B series) involves Gorstroymonolit LLC, which has experience of construction of 23.3K sq.m. of premises.

Factors constraining the credit rating

Temporary suspension of works at construction of the residential building located 10, Lincoln Str., Lviv, which is currently on the initial stage.

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

Ongoing negative trends in Ukraine`s real estate sector.

Instability in legislation and tax environment controlling both the construction industry and project financing.