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05.08.2009
Credit-Rating upgrades Globyno Meat-Packing Plant to uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBBB from uaBBB- (uaBBB minus) the long-term credit rating assigned to registered coupon bonds (series A) issued by Poltava Oblast-based Globyno Meat-Packing Plant LLC (‘issuer’ or ‘company’). The amount of the issue is UAH50m, with 5-year original maturity. The outlook on the rating has been changed to positive. The company’s principal activity is production of meat and meat products. In the course of analysis Credit-Rating considered issuer’s financial statement for 2008 and its other inside information.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.
Positive outlook indicates that the rating may be upgraded in the course of the year if the positive trends are retained and the current risks are mitigated.
Factors maintaining the credit rating
- The issuer is associated with legally informal Globyno group of companies, which enjoys strong market standing in Ukraine’s sector of meat and meat products.
- Growth in issuer’s key figures recorded in 2008 versus those of 2007: the net sales gains increased 1.6x to UAH403.4m; the EBITDA rose by 25.4% to UAH20.5m, with the EBITDA margin recorded at 5.1%.
- Issuer’s information transparency and openness.
Factors constraining the credit rating
- Absence of audited consolidated statement of Globyno group, which incorporates the issuer.
- The ratio of short-term debt to the EBITDA (of 2.6 in 2008).
- Hot competition in the national meat market under decreased population’s purchase capacity.
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
