Russia-Meat company credit rating dropped.

RUSSIA-MEAT COMPANY CREDIT RATING DOWN GRADED.

Goldman Sachs has lowered predictive appraisals of ОАО Vimm-Bill-Dann Food" (VBD), OAO Cherkizovo Group, and OAO Razgulyay by 49%, 72%, and 41%, respectively.

Apart from that, pursuant to results of review of Razgulyay shares the recommendation was changed from "buy" to "sell", and for global depository receipts (GDR) of Cherkizovo - from "hold" to "sell".

For American depository receipts (ADR) of VBD the recommendation "hold" remains unchanged.

Unemployment growth and actual wage fall in the Russian Federation will have a negative impact on the performance of food and soft drink producers in 2009, as it will lead to a shift of buyers’ preferences to the segment of cheaper products, and thus review of the market basket.

Moreover, Razgulyay and Cherkizovo may also face some difficulties in external debt restructuring, which increases risks of investing in securities of these companies.