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20.10.2008
Credit-Rating assigns Agroprodukt LLC`s upcoming bond issue uaB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaB- (uaB minus) to interest-bearing bonds (series A) to be issued by Odessa-based Agroprodukt LLC (`issuer` or `company`). The amount of the issue is UAH65m, with 5-year original maturity. The company`s principal activity is foodstuff trading. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 and 1H2008 and its other inside information.
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
- The issuer operates the facilities, which enable it to produce agricultural products.
Factors constraining the credit rating
- Issuer`s insignificant experience in production of agricultural products.
- Expected rise in issuer`s debt burden (the issue size is UAH65m, with the net sales revenue for 2007 being at UAH1.6m.
- Issuer`s vulnerability to changes in the state policy affecting the agricultural sector and significant impact on seasonality factors on 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 more information, please contact:
Information and Communication Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
