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18.08.2009
Credit-Rating affirms VESTA-Dnepr CJSC’s ratings at uaBBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it affirmed at uaBBB- (uaBBB minus) the long-term credit rating assigned to Dnepropetrovsk-based Ukrainian-Hungarian VESTA-Dnepr CJSC (‘issuer’ or ‘company’) and to issue of coupon bonds (series A-C) for the amount of UAH150m due Feb. 25, 2012. The outlook on the rating has been changed to negative from stable. The company’s core business is manufacturing batteries for cargo and personal cars. To revise the rating Credit-Rating considered issuer’s financial statements for 2008 and 1Q2009 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.
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
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Strong market standing of VESTA international scientific and industrial corporation, which incorporates the issuer, in Ukraine’s and CIS’s markets.
Factors constraining the credit rating
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A company’s significant debt burden, coupled with the fact that all the company’s property pledged as security, including by obligation’s of other group’s companies.
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Decline in issuer’s performance indicators.
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Issuer’s dependency upon lead and lead alloys prices, which tend to fluctuate considerably.
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.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
