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22.07.2009
Credit-Rating revises Kharkov State Aircraft Manufacturing Company’s ratings
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it affirmed at uaCCC the long-term credit rating assigned to Kharkov-based Kharkov State Aircraft Manufacturing Company (‘company’). Credit-Rating has also announced that it downgraded to uaB from uaA (provisional) the long-term credit rating assigned to company’s upcoming issue of registered coupon bonds (series A-G) for the amount of UAH1.6bn due Aug. 9, 2015. The outlook on the ratings is stable. The company’s principal activities are manufacturing Antonov aircrafts, servicing aircrafts of own production, supply of components and spares, and personnel training. In the course of analysis Credit-Rating considered company’s financial statements for 2004-2008 and 1Q2009 and its other inside information.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.
An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
- A guarantee provided by the Government of Ukraine to company’s obligations on a bond issue (repayment of principal) given that the company uses the funds raised from the bond issuance for the purpose stated in the resolution of the Ministry of Industrial Policy of Ukraine #437 dated June 30, 2009.
- The company’s strategic importance.
Factors constraining the credit rating
- The company’s failure to meet its commitments on a number of its obligations to financial institutions.
- Company’s debt burden, including high portion of short-term obligations in the structure of the debt under hampered access to lending.
- Insufficiency of anticipated cash flows for coupon payments on the bonds to be issued.
- Company’s detrimental performance recorded over recent years.
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 +38044490 25 50
SRozumyak@credit-rating.ua
Denis
Rudenko
DRudenko@credit-rating.ua
