OREANDA-NEWS. January 6, 2011. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it downgraded to uaCCC from uaB- (uaB minus) the long-term credit rating assigned to registered housing bonds (series A) issued by Kharkiv-based Sentyabr PE (‘issuer’ or ‘company’) for the amount of UAH30.6m, The outlook on the rating is stable. The company’s principal activity is investing and construction. Today the company constructs a residential building with installed social and administrative facilities, and a shopping centre and underground and on-ground parking, both located in the city of Kahrkiv. To revise the rating Credit-Rating considered issuer’s financial statements for 3Q2010 and 9M2010 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 construction readiness (33.5%) of the residential complex located Shevchenko Str., city of Kharkiv, which premises to redeem the bonds of series A.

Factors constraining the credit rating:

A suspension of construction works at the above mentioned residential complex.

Issuer’s negative equity of UAH(11.3m) as at end-3Q2010, prompted by issuer’s loss-generating performance in the past few years.

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

Stagnation in Ukraine’s real estate sector.

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