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16.05.2008
Credit-Rating assigns Image Holding Sbsd.`s upcoming bond issue uaA
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaA to registered coupon bonds (series D) to be issued by Image Holding DP (`issuer` or `company), which is a Subsidiary Company of Zaporizhzhia Oblast-based Image Holding ApS. The amount of the issue is UAH50m, with 4-year original maturity. The company`s principal activity is production of spirits beverages. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 as well as its other inside information.
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.
Factors maintaining the credit rating
- The issuer is the leading company on the national spirits market the company has recorded reaching of a 25 per cent market share in 2007.
- The issuer`s sales have grown over the past few years, specifically in 2007 the sales volume made up 9.2m decalitres (12% higher than of the previous period) and UAH2bn (17% growth).
- Issuer`s modest debt burden, in fact the consolidated debt to EBITDA ratio accounted for 2.1x in 2007 with that of the equity to debt being 1.3x.
Factors constraining the credit rating
- Hot competition in the national spirits market, where a.90% of issuer`s products are realized.
- High sales concentration on a single brand: the specific gravity of `Khortytsa` trademark in issuer`s sales structure makes up over 80%.
- High company`s dependency upon state regulatory policy over the Ukraine`s national spirits market.
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
