Liko-Holding`s Bond Issue Downgraded

Credit-Rating, a nationally recognized credit rating agency in Ukraine, reported that it had downgraded Liko-Holding’s issue of registered special-purpose (M, N series) bonds to a long-term credit rating of uaBB. The bond issue is worth 55.7 million hryvnias; the date of maturity is July 12, 2007. The rating’s outlook has been changed to stable.

Liko-Holding’s principal activity is investment and construction. The company is currently engaged in a residential housing project in Kiev. In the course of its analysis, Credit-Rating considered the issuer’s 2007 financial statements, with a focus on the fourth quarter. Internal information provided by the company was also considered.

A borrower or a debt instrument with uaBB credit rating has lower than sufficient creditworthiness as compared with other Ukrainian borrowers or debt instruments. This level of creditworthiness is highly susceptible to adverse changes in commercial, financial and economic conditions. The plus (+) or minus (-) modifiers indicate intermediary rating categories.

A stable outlook indicates no anticipated change to the credit rating within a year.