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10.09.2007
Bond issue by Inteltrade LLC assigned uaBB- credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBB- (uaBB minus) long-term credit rating to UAH30m 5-year issue of registered coupon bonds (B series) by Kiev-based Inteltrade LLC (`Issuer` or `company`). The company`s primary activity is the beet treacle trade in both domestic and foreign markets. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2006 and 1Q2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.The plus (+) or minus (-) modifier denotes rating`s relative status within major categories .
Factors maintaining the credit rating
- The company is one of the biggest Ukrainian beet treacle traders enjoying 8-year experience in the market.
- The Issuer`s key figures grew in 2005-2006 and 1Q2007, specifically the company`s assets 13.4x to UAH48.8m, the equity 32.3x to UAH3.7m; company`s net sales grew 3.5x in 2006 to UAH98.5m as compared to 2004, with the net profit rising 6.6x to UAH1m.
- The planned increase to UAH20m in company`s authorized stock with the monetary funds will enhance Issuer`s capitalization.
Factors constraining the credit rating
- The issue size of UAH30m exceeds Issuer`s equity of UAH3.7m accounting for 61.4% of company`s assets as of April 1, 2007.
- Low Issuer`s profitability in the period under analysis, in fact the sales profitability remained below 1%.
- High Issuer`s vulnerability to seasonality, to state regulation of the industry, to trade restrictions in foreign markets, and to exchange rates fluctuations.
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
