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15.11.2007
Credit-Rating: Altera Finance`s upcoming bond issue assigned uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBB to UAH20m 5-year registered coupon bonds (A series) to be issued by Kiev-based Altera Finance CJSC (`Issuer` or `company`). The company`s primary activity is securities and currency operations. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2006 and 1H2007 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
- The Issuer takes 18th place by the volume of shares traded and 9th place by the volume of municipal bonds traded in PFTS rating and 4th place of a custodian in the rating of the Professional Association of Registrars and Depositories (PARD). Along with the asset management company and with the company-provider legal services and registrar of proprietary rights for securities the Issuer is incorporated with Altera Finance investment group, which enjoys a significant experience in the Ukrainian financial market.
- The size of the Issuer`s authorized stock of UAH70m as of Jul.1, 2007 exceeds 3.5x the planned bond issue size of UAH20m.
Factors constraining the credit rating
- The Issuer`s investment portfolio is poorly diversified, in fact during the past year over Tof its structure has been formed with the shares of a single company; these shares with the bonds issued by another company account for 88.5 per cent of the overall Issuer`s financial investments and almost ѕ of the Issuer`s asset balance.
- The Issuer`s risks are common with those the entire group is exposed to.
- The Issuer is exposed to high risks associated with operations in securities market, which has underdeveloped and changeable environment, with the significant number of securities transactions being of non-market nature.
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
