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23.07.2007
Bond issue by Omega-Avtopostavka LLC assigned uaBBB credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBBB long-term credit rating to the UAH50m 5-year issue of registered coupon bonds (B series) by Kiev-based Omega-Avtopostavka Trade and Industrial Company, LLC. The company's principal activity is trade of trucks and passenger cars, of spare-parts, components and tires. In the course of analysis Credit-Rating considered Issuer's financial statements for 2002-2006 and 1Q2007 as well as other inside information furnished by the company.
A credit rating of uaBBB is an investment grade rating, indicating an ADEQUATE CAPACITY of an obligor to pay both interest and principal on the given debt liability in the Ukrainian financial market environment. This rating indicates a level of creditworthiness that is more susceptible to adverse changes in commercial, financial and economic conditions than debt obligations with higher investment grade ratings.
Factors maintaining the credit rating:
- The Issuer is incorporated with the legally informal group of companies, which is one of the biggest Ukrainian distributors of CIS-made trucks, components and tires;
- The UAH50m bond issue will be underwritten by Omega-Avtopostavka LLC, which is the primary group's company with the 2006 net profit amounting to UAH86m and UAH209.8m equity as of Apr. 1, 2007;
- The group's sales have grown over the past few years; specifically the sales gains rose 88% in 2006 to UAH1.2bn as compared to the year-earlier figuresl;
- High growth rates of automotive market during the past few years with such a tendency being expected to be retained.
Factors constraining the credit rating:
- Risks, which may be imposed by redistribution of cash flows within the group neglecting Issuers interests.
- Over 90% of the group's financial liabilities of UAH130.9m are accounted for the Issuer's balance sheet.
- The group's vulnerability as an importer to currency rates fluctuations and to state regulation on import and export operations.
Information on all the credit ratings assigned in accordance with the Ukrainian National Scale may be found in 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
