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04.06.2008
Credit-Rating assigns NPP AMI LLC`s upcoming bond issue uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaBB to registered coupon bonds (series C, D) to be issued by Donetsk-based NPP Agency for Marketing Research AMI LLC (`issuer` or `company`). The amount of the issue is UAH50m, with 5-year original maturity. The company`s principal activity is system integration, manufacturing of computer equipment, training and certifying of IT-personnel. In the course of analysis Credit-Rating considered issuer`s financial statements for 2002-2007 and 1Q2008, as well as its other inside information.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The issuer`s net sales have increased in the past few years, specifically in 2007 they added 27% (to UAH198.9m), as compared to the previous period.
- Issuer`s strong market positions in certain regions, namely Donetsk and Lugansk Oblasts.
Factors constraining the credit rating
- Issuer`s significant debt burden (in 2007 the net income exceeded 3.6x the EBITDA) and its expected rise after the issuance of the bonds of C and D series in 2008-2009.
- Hot competition in the segment of computer equipment.
- Issuer`s modest profitability indicators (the EBITDA profitability did not exceed 5% in the period under analysis).
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
