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10.09.2007
Bond issue by Unigran 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 UAH30m 4-year issue of registered coupon bonds (D series) by Kiev-based Unigran LLC (`Issuer` or `company`). The company`s primary activity is supplying the construction companies in Kiev, Kiev Oblast and in other Ukrainian cities with granite products. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 1Q2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- Growth in Issuer`s key indicators in 2004-2006 and 1Q2007, in fact 7.5x to UAH68.9m of assets, 8.8x to UAH41.3m of equity; 2006 saw 58.8% growth in net sales to UAH199.4m as compared to the previous year; the EBITDA rose 2.9x to UAH31.3m; the company`s net profit grew 3.5x to UAH17.3m.
- High efficiency of Issuer`s performance, in fact 2006 saw the production profitability of 153.1% (148.4% in 2005), the profitability of operation of 22% (9.7% in 2005), the sales profitability of 8.7% (3.9% in 2005), the EBITDA profitability of 39.7% (21.2% in 2005).
- The explored quarries amount to 55+ million of cubic meters of granite, which will last beyond 20 years at the present quarrying rates.
- Growth in demand for crashed granite entailed by growing construction of real estate and roads with such a tendency expected to be retained.
Factors constraining the credit rating
- The planned issue size of UAH30m will significantly increase Issuer`s debt burden, with the net debt amounting to UAH16m as of March 31, 2007.
- Seasonality in demand for Issuer`s products.
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
