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06.08.2008
Credit-Rating assigns Agrodom LLC`s upcoming bond issue uaB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine, has today assigned a long-term credit rating of uaB+ to UAH6m 3.5-year upcoming registered interest-bearing bonds (A series) to be issued by Kiev-based Agrodom Agricultural Company LLC (`Issuer` or `Company`). The company`s principal activity is production and sale of agricultural products. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2007 and 1Q2008 as well as other inside information furnished by the company.
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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Factors maintaining the credit rating:
- Growth of the Issuer`s key indicators of financial and economic activities over 2007: area of the leased land increased from 3.5K hectares to 7.4K hectares, net sales increased from UAH5.4m to UAH14m (in 2.6 times);
- The Issuer`s debt load: ratio between the net debt and EBITDA was 2.5 times as of March 31, 2008.
Factors constraining the credit rating:
- As of March 31, 2008 the Issuer`s uncovered loss amounted to UAH4.1m;
- The most of the Issuer` s property has been pledged;
- The Issuer`s sensitivity to changes in the governmental policy in the agroinductrial complex and significant influence of the seasonal factors on the Issuer`s activities.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG Information Systems.
For further information, please contact:
Information and Communication Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
