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27.10.2008
Credit-Rating affirms Kyivmedpreparat OJSC`s bonds at uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it affirmed at uaBBB the long-term credit rating assigned to registered coupon bonds (series A) issued by Kiev-based Kyivmedpreparat OJSC (`issuer` or `company`). The amount of the issue is UAH30m, with 4-year original maturity. The rating was assigned on September 28, 2007. The company`s principal activity is production of pharmaceutical products and materials. In the course of analysis Credit-Rating considered issuer`s financial statements for 1H2008 and its other inside information.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The issuer is one of Ukraine`s biggest producers of medicines represented by wide sales mix of over 80 items in 10 of 14 pharmacological groups, which allows for diversification of income sources.
- High issuer`s performance indicators recorded in the past 3 years, with the EBITDA profitability exceeding 18%.
- Issuer`s moderate debt burden: the ratio of its net debt to the EBITDA was 2.37 as of June 30, 2008.
- Expansion of the national pharmaceutical sector, with this trend expected to be further retained.
Factors constraining the credit rating
- Dependency of the national pharmaceutical sector upon state regulatory policy, coupled with hot competition in the market.
- The major part of issuer`s property is pledged as security for bank loans.
- The issuer`s asset balance is formed by 39% with long-term investments as of June 30, 2008.
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.ua
