print
09.09.2009
Credit-Rating downgrades Transfavorit PF’s bonds to uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaCCC from uaB the long-term credit rating assigned to registered coupon bonds (series A and B) issued by Lviv-based Transfavorit Private Firm (‘issuer’) for the amount of UAH5m and UAH10m respectively to the series stated, with 5-year original maturity. The outlook on the rating has been changed to negative. The company’s principal activity is wholesale trade with machinery and equipment for extractive and construction industries, wholesale trade with building materials and construction activities. In the course of analysis Credit-Rating considered issuer’s financial statements for 2H2008 and full 2008 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.
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
-
Growth in amount of issuer’s net incomes by 65% to UAH29m versus year-earlier similar figures.
Factors constraining the credit rating
-
Issuer’s failure to make timely coupon payments on series A bonds, and to repay bank loans.
-
A major part of issuer’s property is pledged as security for bank loans.
-
Ongoing negative trends in the sector of cargo transportation in Ukraine, which have been prompted by decline in demand for such services.
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
