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04.12.2007
Credit-Rating assigns Bakhmach Machine Building Plant`s bonds uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long term credit rating of uaB to UAH50m 5-year registered coupon bonds (A series) to be issued by Chernihiv Oblast-based Bachmach Machine Building Plant LLC (`Issuer` or `company`). The company`s primary activity is metal processing and production of foundry. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2006 and 1H2007 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 Issuer enjoys a disposal of production facilities and technologies for manufacturing oil and gas equipment and other products, which has been acquired by the Issuer along with with Neftegazmash OJSC`s property.
Factors constraining the credit rating
- Necessity in re-establishing of economic ties and in significant investments for the equipment upgrade entailing the stoppage in the plant`s production cycle during 2003-2006.
- The planned bond issue size of UAH50m exceeds 54.5 per cent the Issuer`s net sales of UAH32.4m for 9M2007; if the issue placed in full the size of quarterly coupon payments of UAH2m exceeds Issuer`s 9M2007 EBITDA of UAH1.8m.
Information on all credit ratings assigned in accordance with the National Scale may be found in REUTERS, BLOOMBERG and FTN MONITOR information systems.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
