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30.01.2009
Credit-Rating rates Company Rise CJSC at uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term counterparty credit rating of uaBB to Kiev-based Company Rise CJSC (company) The companys principal activity is wholesale trade with agricultural machinery and spares, crop protecting products, seeds, mineral fertilizers and agricultural produce. In the course of analysis Credit-Rating considered companys financial statements and its other inside information.
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.
Factors maintaining the credit rating
- Strong market positions of Rise group, which incorporates the company.
- High companys performance indicators, specifically in 1H2008 (as compared with the similar year-earlier period) the companys sales grew 1.7x to UAH1.4bn, the EBITDA increased by 3.3x to UAH223.2m and returns on EBITDA advanced by 10.4 p.p. to 15.5%.
Factors constraining the credit rating
- Anticipated growth in company's debt burden fueled by depreciation of the national currency (as of June 30, 2008 the ratio of net debt to EBITDA calculated for the last 12 months was recorded at 4.1; the specific gravity of foreign currency denominated loans is in excess of 80%).
- Companys deteriorated liquidity prompted by adverse environment in the financial market, and opacity with regard to possible refinancing company's obligations.
- Vulnerability of company's activities to changes in state agricultural policy and seasonality of demand.
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
Denis Rudenko
DRudenko@credit-rating.ua
