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23.02.2009
Credit-Rating rates Odesaoblenergo OJSC 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 Odesa-based Odesaoblenergo OJSC (`company`). The company`s principal activity is supply of electrical energy. In the course of analysis Credit-Rating considered company`s 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
- Company`s natural monopoly on supply of electrical energy at regulated tariff in the region.
- High payment discipline for the energy supplied in 1H2008.
Factors constraining the credit rating
- Company`s dependency upon state regulatory actions in the sector taken by the National Commission for Energy Regulation, specifically upon its tariff policy.
- High company`s debt burden: as of June 30, 2008 the size of company`s net debt (including the restructured indebtedness to Energorynok SP) exceeded 7x the company`s EBITDA calculated for the previous 12 months.
- Risks imposed by redistribution of funds within legally informal VS Energy International Ukraine group, which incorporates the company.
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
