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14.11.2008
Credit-Rating rates Zaporizhvognetryv OJSC and its bond issue 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 to Zaporizhzhia-based Zaporizhvognetryv OJSC (`issuer` or `company`) and its upcoming issue of registered coupon bonds (series A-C) for the amount of UAH100m due Jul. 8, 2014. The company`s principal activity is production of fireproofs. 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.
Factors maintaining the credit rating
- Issuer`s has strong market positions, being the biggest national producer of fireproofs (a. 28% of domestic production).
- Issuer`s moderate debt burden: the ratio of net debt to EBITDA was 0.7 as of the year ended on June 30, 2008.
Factors constraining the credit rating
- The issuer`s structure of production is dominated by formed fireproofs, which are used mainly in outdated Martin process of steel production.
- The issuer requires significant investments in the upcoming few years.
- Cyclicality of the industry, which is associated with price and demand fluctuations.
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
