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03.10.2007
Credit-Rating rates PROGRESS`s bonds at uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH25m 5-year issue of registered coupon bonds by Kherson-based PROGRESS LLC `Issuer` or `company`) a long-term credit rating of uaBB. The company`s principal activity is producing auto spares and components. 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.
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.
Factors maintaining the credit rating
- Issuer`s net gains has grown 2.4x in 2003-2006 to UAH28,473.1K with the net profit rising 34.4x to UAH1,993.1K.
- The number of vehicles in both Russia and Ukraine has been growing during the past few years, which fuels demand for the spares and components.
Factors constraining the credit rating
- Issuer`s negative operating cash flows during the period under analysis.
- The accounts receivable turnover increased to 101 from 61 days in 2004-2006.
- The bond issue is to increase company`s debt burden, namely the annual interest payments on the issue will account for UAH4.1m, which is 63.3 per cent of Issuer`s 2006 EBITDA.
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
