print
12.08.2009
Credit-Rating downgrades UkrTechnoFos LLC`s bond ratings 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 C and D) issued by Rivne-based UkrTechnoFos LLC (`issuer` or `company`). The amount of the issue is UAH7m and UAH50m respectively to the series stated. The issues` original maturity is 6 years. The outlook on the rating is stable. The company`s principal activity is production and sale of mineral fertilizers. To revise the rating Credit-Rating considered issuer`s financial statements for 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.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
-
Issuer`s leading market positions – the company is a leader among Ukraine`s producers of fertilizer mixtures.
Factors constraining the credit rating
-
Company`s eroded liquidity, with a considerable part of company`s assets pledged as security of bank loans.
-
Declining demand for mineral fertilizers.
-
Low entry barriers to the segment of trade with mineral fertilizers.
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
