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09.12.2009
Credit-Rating upgrades Shuvar LLC’s bonds to uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaB from uaB- (uaB minus) the long-term credit rating assigned to registered coupon bonds (series B) issued by Lviv-based Shuvar LLC (‘issuer’ or ‘company’). The outlook on the rating is stable. The amount of the issue is UAH20m due June 20, 2017. The company’s principal activity is construction and operation of markets, shopping malls, arrangement of trade with foodstuffs and non-foods, and providing other services (leasing and maintenance of commercial real estate).
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. This is outlook by default.
Factors maintaining the credit rating
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The issuer’s net earnings from sale of produce and providing services has advanced 70% to UAH21.3m over 1H2009 versus similar year-earlier period.
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High issuer’s profitability indicators, in particular in 1H2009 the company’s EBITDA profitability was recorded at 48%, with the operating profitability being at 43%.
Factors constraining the credit rating
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Company’s high debt burden: the ratio of company’s net debt to EBITDA calculated for the past 12 months was recorded at 4.8 as at June 30, 2009.
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Discrepancy of parameters of the bond issue to typical parameters of issues of coupon bonds.
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Growing competition in the sector of retailing under shrinking population’s incomes.
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
