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13.08.2009
Credit-Rating rates AVIANT State Enterprise
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaCCC (provisional) to Kiev-based State Enterprise Kyiv Aviation Plant AVIANT (`company` or `issuer`). Credit-Rating has also assigned a long-term credit rating of uaB (provisional) to company`s registered coupon bonds (series A, B) for the amount of UAH858m due Jul. 26, 2014. The outlook on the ratings is stable. The company`s core business is manufacturing Antonov aircrafts. In the course of the rating procedure Credit-Rating considered issuer`s financial statements for 2005-2008 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
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Company`s strategic importance.
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A guarantee provided by the Government of Ukraine to the bond issue (repayment of face value), on condition that the company employs funds raised from the bond issue for the purpose stipulated in the decree #438 dated Jun.30, 2009 issued by the Ministry of the Industrial Policy of Ukraine.
Factors constraining the credit rating
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The issuer has violated terms for meeting its obligations towards a number of financial institutions.
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A considerable amount of short-term debts under hampered access to credit funds.
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Insufficiency of anticipated cash flows for coupon payments on the bond issue.
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
