OREANDA-NEWS On 09 October Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaB from uaBB+ (uaBB plus) the long-term credit rating assigned to registered coupon bonds (series A) issued by Dnepropetrovsk-based Agro-Soyuz Manufacturing Company LLC (‘issuer’ or ‘company’) for the amount of UAH10m with 3-year original maturity. The outlook on the rating has been revised to negative from stable. The company’s principal activity is manufacturing of agricultural machinery and equipment. In the course of analysis Credit-Rating considered issuer’s financial statements for 2Q and 1H2009 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.

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 standing of Agro-Soyuz group of companies, with which the issuer is associated, in Ukraine’s sector of sowing machinery.

Factors constraining the credit rating

The issuer’s sales dropped 8 times in 1H2009 compared with 1H2008.

Low company’s liquidity.

A considerable portion of short-term debts under limited access to funding and uncertainty for refinancing obligations under adversities in the financial market.

The group does not have consolidated financial statements.

Seasonality and dependency upon environment in the agricultural machinery market.