OREANDA-NEWS. January 25, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaCCC from uaB the long-term credit rating assigned to registered housing bonds (series B) issued by Boryspil-based TIARA LLC (‘issuer’ or ‘company’). The amount of the issue is UAH26m due March 31, 2010. The outlook on the rating is stable. The company’s principal activity is investing and construction. Today the company implements a number of construction projects located in the city of Boryspil and one project located in the city of Pereyaslav-Khmelnitskyi. To revise the rating Credit-Rating considered issuer’s financial statements for 9M2009 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 residential construction: the issuer has commissioned residential buildings of a. 30K sq.m. total floor area..

Factors constraining the credit rating

Suspension in construction of a residential building located 71b, Golovatogo Str. Boryspil, which premises to redeem the bonds of series B.

The issuer does not have experience in implementation of investment and construction projects, neither in redemption of housing bonds.

Issuer’s volatile performance indicators recorded in 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.