OREANDA-NEWS. On 08 April 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaBB from uaBBB the long-term credit rating assigned to registered housing bonds (series A-C) issued by Kiev-based GRANIT-Plus LLC (`issuer` or `company`). The amount of the issue is UAH150.6m due Dec. 31, 2010. The outlook on the rating is negative. The company`s principal activity is investing and construction. Today the company constructs a multi-storied residential building with installed social facilities and an underground parking garage, which is located in the city of Kiev. 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 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.

Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.

Factors maintaining the credit rating

The issuer (through its participants) is associated with SKF Granit LLC, which has necessary experience in construction projects as a general contractor and co-investor (it has built 7 residential buildings of 102.7K sq.m. in Kiev; today SKF Granit LLC is involved in 4 other projects based in Kiev) and operates production facilities and structural subdivisions, which enables the construction process to be supplied on almost all stages.

Factors constraining the credit rating

Delay in construction works on a multi-storied residential building located 36-a, Belorusska Str., Kiev this project is to be financed with the company`s bonds of series A-C (the delay behind the company`s schedule is about 8 months).

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

Issuer`s negative equity of UAH(2.3m) as of Dec. 31, 2008.

Ongoing negative trends in Ukraine`s real estate sector.

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