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29.12.2008
Credit-Rating downgrades Cherkasy Battery Farm LLC`s bonds to uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaCCC from uaBB the long-term credit rating assigned to registered coupon bonds (series B) issued by Cherkasy-based Cherkasy Battery Farm LLC (`issuer` or `company`). The amount of the issue is UAH30m, with 3-year original maturity. The company`s principal activity is production and supply of broiler meat. To revise the rating Credit-Rating considered issuer`s financial statements as at Sep. 30, 2009 and its other inside information.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.
Factors maintaining the credit rating
- Issuer`s strong market positions in the regional meat market.
Factors constraining the credit rating
- Issuer`s eroded liquidity under turbulences in the financial market and opacity with regard to probability of refinancing issuer`s obligations, which has already entailed issuer`s untimely repayment of series A bonds and failure to meet obligations on series B bonds.
- A significant share of issuer`s assets is pledged as security.
- Increased competition in the Ukraine`s meat market coupled with downward trend in industry`s profitability.
- Issuer`s vulnerability to changes in state agricultural policy.
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
