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08.04.2009
Credit-Rating upgrades Medical Centre Dobrobut CJSC`s bonds to uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBB from uaB the long-term credit rating assigned to registered coupon bonds (series A) issued by Kiev-based Medical Centre Dobrobut CJSC (`issuer` or `company`). The amount of the issue is UAH10m due June 8, 2009. The company`s principal activity is providing medical services. To revise the rating Credit-Rating considered issuer`s financial statements for 4Q08 and full 2008 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
- Growth in the volume of services provided over the past few years, in fact in 2008 the net profit advanced by 77% to UAH24.5m; the net operating cash flow rose by 42% to UAH4.4m as compared to the indicators of 2007.
- Sufficient profitability indicators: the EBITDA margin was recorded at 23.5% in 2008.
Factors constraining the credit rating
- Growth in the volume of issuer`s debt burden: in case the series B bonds are placed in full, they will entail annual coupon payments in the amount of UAH6m (the issuer`s EBITDA amounted to UAH5.7m in 2008).
- Anticipated plunge in demand for paid medical services due to decline in population`s incomes.
- Opacity regarding prospects for development of medical insuring in Ukraine, due to imperfect legislation affecting the business, which constrains growth in the segment.
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
