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05.12.2007
Credit-Rating assigns upcoming Globyno Meat-Packing Plant`s bonds uaBBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBBB- to UAH50m 5-year registered coupon bonds (A series) to be issued by Poltava Oblast-based Globyno Meat-Packing Plant LLC (`Issuer` or `company`). The company`s primary activity is producing of meat and sausages products and semis. 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. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The Issuer is one of the leading market players in Ukraine selling its products under Globyno trade mark via its own outlet chain.
- Issuer`s key figures grew in 2003-2006, namely the net sales rose 3.8x to UAH169.3m with the EBITDA increased 11x to UAH14.6m.
Factors constraining the credit rating
- The planned issue size of UAH50m exceeds Issuer`s equity of UAH22.6m as of Sep. 30, 2007.
- The Issuer suffers from absence of own raw materials sources accompanied by decline in the number of cattle and swine in Ukraine, which requires significant investments for development of this sector.
- High volume of nonspecialized operations with securities, which account for the principal part of Issuer`s incomes in the past few years.
- Hot competition in the Ukrainian meat and sausage market.
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
