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23.05.2007
Upcoming bond issue by Nidan+ assigned uaBB+ credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBB+ (uaBB plus) long-term credit rating to the upcoming issue of registered coupon bonds (A series) by Beregove-based Nidan+ LLC (`Issuer` or `company`) for the amount of UAH 50m with the 4-year original maturity. The main company`s activity is production of juice, juice-containing beverages and of wine. In the course of analysis Credit-Rating used Issuer`s financial statements for 2002-1Q2007 as well as other inside information furnished by the company.
Issues rated uaBB are the least affected by the risk of non-payment of the principal and interest within the speculative grade. The obligor, however, may be impaired to timely and in full meet its commitments on the obligation in the Ukrainian financial market environment in the event of adverse changes in business, financial and economic conditions. However, the possibility of nonpayment is low in the near future. The `+` and `-` modifiers denote rating`s relative status within major categories.
Factors maintaining the credit rating
- The Issuer takes a. 5% of the juice-containing beverages market, which has rapidly been growing over the past few years with such a tendency to be retained in future.
- Growth of Issuer`s key indicators, specifically the assets have grown 2.3x during 2004-1Q2007 (up to UAH 119.4m) with the net sales profit have grown 3.2x (up to UAH 91m).
- High Issuer`s liquidity as of Apr. 1, 2007, specifically the current liquidity ratio amounted to 4.8x, with the quick liquidity amounting to 3.9x.
Factors constraining the credit rating
- The ROA and ROE remain low, in fact there was an uncovered loss of UAH 1.5m as of Apr. 1, 2007.
- Issuer`s aggressive development strategy for 2007-2010, which envisages over UAH 100m investment expenditures which leads to increase in debt burden.
- Highly-growing competitiveness on juice-containing beverages market.
- Risks imposed by initial establishing the structure and management system of legally unexecuted Fruit Master Group the Issuer is incorporated with.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found in the REUTERS, BLOOMBERG and FTN MONITOR information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
