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25.09.2008
Credit-Rating assigns Ukrbudresursy OJSC`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- (uaBB minus) to registered coupon bonds (series A) to be issued by Kiev-based Ukrstroyresursy OJSC (`issuer` or `company`). The amount of the issue is UAH12m, with 3-year original maturity. The company`s principal activity is wholesale and retail trade with metal products and building materials. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 1H2008 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 issuer operates a wide-spread outlet chain, which comprises 4 branches located in different Ukraine`s regions.
- The issuer has direct supply agreements with producers of metal products and building materials.
Factors constraining the credit rating
- Issuer`s volatile performance indicators.
- The issuer`s debt burden is to rise to UAH24.3m (including the upcoming bond issue of UAH12m), which exceeds 8.4x the issuer`s EBITDA of UAH2.8m as at end-1H2008.
- Issuer`s dependency upon one supplier MD Group Zaporizhzhia OJSC, which share in issuer`s sales structure is in excess of 70% (in monetary units).
- Unstable prices and demand in the segment of metal products and building materials.
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 analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
