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03.09.2008
Credit-Rating assigns Furshet CJSC`s upcoming bond issue uaAA-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaAA- (uaAA minus) to registered coupon bonds (series E) to be issued by Kiev-based Furshet CJSC (`issuer` or `company`). The amount of the issue is to be UAH200m, with 3-year original maturity. The company`s principal activity is retailing. In the course of analysis Credit-Rating considered the financial statements of Furshet CJSC for 2003-2007 and 1H2008, the consolidated financial statements of Furshet group for 2004-2007 and other inside information furnished by the issuer.
An obligor or a debt liability with uaAA credit rating is characterized with the VERY STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Factors maintaining the credit rating
- The amount of Furshet group`s earnings has been rapidly growing over the past few years, specifically the group`s net consolidated income recorded in 2007 grew by 45% (to UAH3.5bn) with the EBITDA increased by 67% (to UAH256m).
- The vigorous development of Furshet chain, which embraced 88 supermarkets in Ukraine and 6 in Moldova as of May 1, 2008.
- The Furshet group`s leading market positions.
- High growth rates of retail segment over the past few years, with this trend expected to be further retained.
Factors constraining the credit rating
- The Furshet group`s free cash flows have been negative over the past few years accompanied by further expected growth in debt burden weighed by significant amounts of planned investments.
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
