print
21.04.2008
Credit-Rating upgrades UkrTechnoFos LLC`s bonds to uaBBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBBB- (uaBBB minus) from uaBB the long-term credit rating assigned to registered coupon bonds (series C) issued by Rivne-based UkrTechnoFos LLC (`Issuer` or `company`). The amount of the issue is UAH7m, with 3-year original maturity. The company`s principal activity is production of pomace mixes, trade with fertilizers, pesticides and other agricultural chemicals. To revise the rating the agency considered Issuer`s financial statements as of Dec. 31, 2007 as well as its other inside information.
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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Factors maintaining the credit rating
- The Issuer`s net sales grew 15x over the past 5 years to UAH254.8m; the EBITDA rose 62x to UAH22.8m, the equity increased to UAH19.7m from UAH0.8m with the EBITDA profitability added 7 p.p. to 9%.
- Issuer`s strong market positions, which is among 5 Ukraine`s leading producers of pomace mixes, which consumption has been constantly growing over the recent years.
- The Issuer has set in operation new production facilities, which empowered it to expand its activities.
Factors constraining the credit rating
- The Issuer`s debt burden including series D bonds grew in 2004-2007: the ratio of Issuer`s financial liabilities to equity increased to 5.07 as of Dec.31, 2007 from 0.88 as of Dec.31, 2003.
- Growing competition on the fertilizers market, specifically in the segment of pomace mixes.
- Issuer`s vulnerability to changes in the state agricultural policy and seasonality of demand.
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
