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08.07.2008
Credit-Rating assigns Yablunevyi Dar LLC`s 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+ (uaBB plus) to registered coupon bonds (series A) issued by Lviv Oblast-based Yablunevyi Dar LLC (`issuer` or `company`). The amount of the issue is UAH50m, with 3-year original maturity. The company`s principal activity is production of concentrated fruit and berry juices and syrups and sale of frosted berries. 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 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Factors maintaining the credit rating
- The rapid growth of sector of juice-contained beverages, with the issuer taking 14% of domestic production of concentrated juices, which is the raw material for production of juice-contained beverages.
- Growth in issuer`s key figures in 2005-2007: the net sales income increased 11.9x to UAH134.8m, and the EBITDA grew 10.6x to UAH11.8m.
Factors constraining the credit rating
- The expected growth in issuer`s debt burden entailed by implementation of the planned investment projects.
- The issuer does not have own raw material base.
- Issuer`s insufficient diversification of activity, specifically the share of apple processing is 98.8% in issuer`s production structure.
- Seasonality of activity and dependency upon crops of fruits and berries.
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
