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31.05.2007
Bond issue by Image Holding, the subsidiary of Image Holding ApS, assigned uaA
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaA long-term credit rating to the issue of registered coupon collateral bonds (B series) by Zaporozhye region-based Image Holding (Issuer or company), the subsidiary of Image Hoding ApS for the amount of UAH125m with the 3-year original maturity. The main companys activity is production of alcohol beverages. In the course of analysis Credit-Rating used Issuers financial statements for 2003-2006 as well as other inside information furnished by the company.
The uaA issue rating reflects strong capacity of the obligor to pay the issue given, it may, though, be more vulnerable to adverse changes in economic, financial and business conditions than debt liabilities rated uaAA and uaAAA.
Factors maintaining the credit rating
- The Issuer took the 1st place by sales in 2006, having gained over 20% of domestic market, which is fueled by companys sound marketing policy.
- Growth in Issuers performance indicators over the past 3 years, specifically the assets grew almost 9x, up to UAH883.2m, the equity grew to UAH330.7m from UAH73.1m, the 2006 net sales grew to UAH1,937.9m as compared to UAH450.5m of 2005.
- Companys 2006 net revenue of UAH125.2m correlates with the planned issue size of UAH125m; the 2006 EBITDA of UAH159.8m exceeds the consolidated debt of UAH120.2m on financial obligations as of Jan. 1, 2007.
Factors constraining the credit rating
- Strong competitiveness on domestic market of vodka in line with its stabilization of consumption (35-40m decalitres annually).
- Issuers fulfillment of planned sales is contingent on increase of expansion to foreign markets which requires large expenses for product promotion.
- High companys dependency on state regulations in Ukrainian alcohol market.
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
