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28.02.2008
Credit-Rating assigns Kirovogradoblenergo`s upcoming bond issue uaA- (provisional)
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaA- (uaA minus) (provisional) to UAH120m 5-year registered coupon bonds (B series) to be issued by KIrovogradoblenergo OJSC (`Issuer` or `company`). The company`s principal activity is supply of electrical energy. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2000-2006 and 9M2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to 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 upcoming issue is underwritten by Hotel Premier Palace OJSC, which EBITDA for 9M2007 made up UAH50.3m (UAH56.5m for 2006).
- The Issuer enjoys a natural monopoly on electrical energy supply at regulated tariff in its region.
- The Issuer`s customers have paid in full for all the energy consumed, in fact this indicator exceeded 98 percent in 2006-2007.
Factors constraining the credit rating
- Issuer`s dependency upon state regulatory policy, namely tariff policy of National Commission for Energy Regulation.
- Risks imposed by redistribution of funds within the legally informal VS Energy International Ukraine group of companies, which incorporates both the Issuer and its underwriter.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and Communication Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
