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18.09.2007
Upcoming bond issue by MaksBet LLC assigned uaBBB credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of uaBBB long-term credit rating to the upcoming UAH75m issue of registered coupon bonds (A, B series) by Kiev-based MaksBet LLC (`Issuer` or `company`) with the original maturity of A series being 2 years, of B series being 3 years. The company`s principal activity is providing the leisure services, namely development of a gambling hall chain. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2002-2006 and 1H2007 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
- The Issuer is the leader in the Ukrainian market of gambling machines, being incorporated with the legally informal international holding company, which as well operates in Russia, Romania, Belorussia and Georgia. This group owns 92 gambling halls and over 4000 gambling machines, recording USD46m consolidated income in 2006.
- Growth in Issuer`s key figures, specifically the net income rose 2.7x to UAH90,224.5K in 2004-2006; the net revenue grew 11.5x to UAH11,829.2K; the Issuer`s assets accounted for UAH167,834.4K, with the equity amounting to UAH121,731.5K
- High Issuer`s profitability (EBITDA of 59.3%) and financial strength, with the equity to assets ratio making up 0.68 in 2006.
Factors constraining the credit rating
- The Issuer`s business in Kiev is concentrated in the niche of gambling machines (over 90% of Issuer`s incomes) coupled with significant dependence upon state regulation, including local executive and legislative bodies.
- Significant volume of accounts receivable in the assets structure (47.4% as of June 30, 2007) presented mainly by accounts with associated companies.
- Over 70% of Issuer`s property is pawned.
Information on all 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
