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12.12.2008
Credit-Rating downgrades Drogobych Rock Bit Works OJSC to uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaBB from uaBBB- (uaBBB minus) the long-term credit rating assigned to the registered coupon bonds (series B) issued by Lviv Oblast-based Drogobych Rock Bit Works OJSC (`issuer` or `company`) for the amount of UAH25m with 3-year original maturity. The outlook on the rating is negative. The company`s principal activity is manufacturing of drilling equipment.
The company`s rating was lowered in scale due to temporary stoppage in the company`s facilities, which had been prompted by lack of operating funds caused by delays in payments by issuer`s counterparties, in VAT refunding, and difficulties associated with raising funds from banking institutions.
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.
Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.
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
