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16.01.2009
Credit-Rating rates Omega LLC at uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaBB to Dnepropetrovsk-based Omega LLC (`company`). The company`s principal activity is foodstuff and non-food retailing. In the course of analysis Credit-Rating considered company`s financial statements for 2006-2007 and 9M2008 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
- Company`s market standing in the regional retail sector, in fact the company operates Varus retail chain, which embraced 6 supermarkets and 11 outlets.
- The company`s key figures grew in the previous periods: the company`s net earnings increased to UAH422m over 2004-2007; the net earnings increased by 48.7% over 9M2008 as compared to the similar year-earlier period.
Factors constraining the credit rating
- The size of company`s debt burden: as of Sep. 30, 2008 the ratio of net debt to the EBITDA was recorded at 5.0.
- Opacity with regard to probability of refinancing the company`s obligations under adverse environment in the financial market and high specific gravity of short-term debt obligations in the overall volume of company`s debts.
- Hot competition in the sector under decreased population`s incomes.
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
