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23.04.2009
Credit-Rating assigns Healthcare Centre Dobrobut CJSC’s upcoming bond issue 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 registered coupon bonds (series B) to be issued by Kiev-based Healthcare Centre Dobrobut CJSC (issuer or company). The amount of the issue is UAH24m, with 3-year original maturity. The companys principal activity is rendering medical services. In the course of analysis Credit-Rating considered issuers financial statements for 2004-2008 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 issuers debt burden: in case the series B bonds are placed in full, they will entail annual coupon payments in the amount of UAH6m (the issuers EBITDA amounted to UAH5.7m in 2008).
- Anticipated plunge in demand for paid medical services due to decline in populations 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
