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02.11.2007
Credit-Rating rates Energoavtomatika`s bonds at uaBBB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH70m 4-year registered coupon bonds (B series) to be issued by Dnepropetrovsk-based Dnepropetrovsk Research Works Energoavtomatika LLC (`Issuer` or `company`). The company`s primary activity is manufacturing of automotive batteries. 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. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The Issuer enjoys over 10-year experience in manufacturing of automotive batteries having a.15 per cent of the national market.
- Issuer`s liquidity and financial strength indicators has remained high in the past 5 years: company`s performance is lucrative having generated UAH10m net profit in 2006.
- The Issuer is a participant of Ukrsplav LLC (84.6 per cent of the authorized stock), which is the principal supplier of lead and lead alloys to the Ukrainian market; the specific gravity of these materials in the product net cost is 65-70 per cent.
- The growing number of cars in Ukraine will fuel demand for automotive batteries.
Factors constraining the credit rating
- Issuer`s dependency upon prices for lead and lead alloys, which has rapidly been growing recently.
- The UAH70m issue of B series bonds will significantly increase Issuer`s debt burden: the company`s consolidated debt on bank loans and bonds, if B series placed in full, will rise 4 times.
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
