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21.05.2008
Credit-Rating assigns ARTA Securities LLC`s bond issue uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaB to registered coupon bonds (series B) issued by Kiev-based ARTA Securities LLC (`issuer` or `company`). The amount of the issue is UAH30m, with 3-year original maturity. The company`s principal activity is securities trading and brokerage. 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 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 is incorporated with the group of companies, which are associated under ARTA brand, which enjoy a positive experience in Ukraine`s financial market.
Factors constraining the credit rating
- Insufficient diversification of issuer`s securities portfolio, which, as of Dec. 31, 2007 makes up 53.5% of the company`s asset balance being 2/3 constituent of bonds of a single company.
- Risks imposed by possible redistribution of cash flows within the group of companies associated under ARTA brand neglecting issuer`s interests, accompanied by issuer`s vulnerability to performance of the entire group.
- The issuer does not have development strategy.
- High level of exposures associated with operations in securities 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
