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16.11.2007
Credit-Rating: Pridneprovskyi Combine`s upcoming bond issue assigned uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBBB to upcoming UAH10m 3-year registered coupon bonds (B series) to be issued by Dnepropetrovsk-based Pridneprovskyi Combine Joint-Stock Company OJSC (`Issuer` or `company`). The company`s primary activity is milk processing. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 9M2007 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
- Growth in Issuer`s key figures in the past few years, specifically the net sales in 2006 made up UAH159.8m which is 1.5x higher that of 2003 (UAH157.5m for 9 months of 2007), the Issuer`s EBITDA rose 3.6x to UAH10.9m (UAH9.9m for 9 months of 2007).
- Issuer`s modest debt burden, in fact the Issuer`s consolidated debt on banking loans and on bonds accounted for UAH18.3m, in which 28.1 per cent are Issuer`s assets and 54.8 per cent is Issuer`s equity.
Factors constraining the credit rating
- The Issuer`s sales are concentrated in a single region, namely Dnepropetrovsk Oblast accounts for approximately 60 per cent of the Issuer`s sales (for January-August 2007).
- High region`s vulnerability to fluctuations in milk prices associated with seasonality in its production, reduction in resource basis and significant regulatory influence.
- The dairy market remains hotly competitive, with such a tendency expected to be further retained.
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
