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23.07.2009
Credit-Rating downgrades Atlant-M IAH LLC’s bonds to uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaBB from uaBBB- (uaBBB minus) the long-term credit rating assigned to registered coupon bonds (series A, B) issued by Kiev-based Atlant-M International Automotive Holding LLC (‘issuer’ or ‘company’) for the amount of UAH100m, with 3-year original maturity. The outlook on the rating is negative. The core business of the holding, which incorporates the issuer, is trade with automobiles in Ukraine, Russia and Belorussia. In the course of analysis Credit-Rating considered issuer’s financial statements for 1Q2009 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.
Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.
Factors maintaining the credit rating
- The issuer is associated with Atlant-M international holding, which has significant experience in automotive markets of Russia, Ukraine, and Belorussia.
- The bond issue has been provided with guarantees from Autohaus Kiev LLC and Autohaus Atlant-M LLC, which are the holding’s companies.
Factors constraining the credit rating
- Issuer’s detrimental performance recorded in 2008 and 1Q2009.
- Ongoing negative trends in Ukraine’s real estate sector.
- Absence of audited financial statements of the holding.
- A major part of the holding’s property is pledged as security for bank loans granted to holding’s companies.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in Credit-Rating’s corporate web-site http://www.credit-rating.com.ua/ , as well as in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and analytic
department
Sergey Rozumyak +38044490 25 50
mailto:SRozumyak@credit-rating.com.ua
Denis Rudenko
DRudenko@credit-rating.ua
