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20.09.2007
Bond issue by DneproTech assigned uaB credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of uaB long-term credit rating to UAH8m 5-year issue of registered coupon bonds (A series) by Dnepropetrovsk-based DneproTech LLC (`Issuer` or `company`). The company`s principal activity is sale of car tires and batteries. 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 uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The demand for car tires has been growing over the past few years with such a tendency being expected to be retained.
Factors constraining the credit rating
- The company`s equity is currently negative, with its assets being funded primarily at the expense of short term line of credit, which accounts for 95.9% of the company`s asset balance as of March 31, 2007; the company`s goods in turnover and its immovable property are pawned.
- Negative cash flow from operating activity during the entire Issuer`s period of operation.
- The majority of company`s incomes are gained from a single type of goods being in demand seasonally.
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
