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12.11.2008
Credit-Rating rates VESTA-Dnepr CJSC and its bonds at uaBBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaBBB- (uaBBB) to Dnepropetrovsk-based VESTA-Dnepr CJSC (`issuer` or `company`) and to its upcoming issue of registered coupon bonds (series A-C) for the amount of UAH150m due Feb. 25, 2012. The company`s principal activity is manufacturing car rechargeable batteries. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Factors maintaining the credit rating
- Strong market positions on Ukraine`s and CIS market of VESTA international scientific and industrial corporation, which incorporates the issuer.
- High growth rates of number of cars recorded over the past few years, which fuels demand for the batteries.
- Diversification of markets (50% of produce was exported in 1H2008).
Factors maintaining the credit rating
- Aggressive financial policy of VESTA international scientific and industrial group, which is aimed at significant investments at the expense of borrowed funds.
- Risks associated with corporate governance, which is connected with significant volume of transactions with related parties and absence of consolidated financial statements.
- Issuer`s dependency upon lead and lead alloys prices, which tend to fluctuate.
- All of the company`s property is pledged as security, including as that on liabilities of other companies.
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.ua
