OREANDA-NEWS. On 06 April 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaB from uaBB the long-term credit rating assigned to registered housing bonds (series A, B) issued by Crimea-based LOGOS CJSC (`issuer` or `company`). The amount of the issue is UAH14.6m due Sep. 30, 2009. The company`s principal activity is investing and construction. Today the company constructs a hotel located in the city of Evpatoriya. To revise the rating Credit-Rating considered issuer`s financial statements for 4Q08 and full 2008 and its other inside information.

An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

The issuer is affiliated with Stroykompleks OJSC, which is one of the leading construction companies in the city of Evpatoriya and acts as a contractor for Malyi Hotel, located 11, Franko Str., premises in which to redeem the bond issue.

The amount of funds invested in the project.

Factors constraining the credit rating

Delays in construction works at Malyi Hotel and slippage in the project`s delivery term (3Q10), which will prompt failure in meeting obligations on redemption of series A and B bonds (maturities starts from Oct. 1, 2009 to Dec. 25, 2009).

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

Issuer`s unstable performance indicators recorded over 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.