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28.12.2009
Credit-Rating upgrades Globyno Meat Packing Plant LLC to uaA-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaA- (uaA minus) from uaBBB the long-term credit rating assigned to Poltava Oblast-based Globyno Meat Packing Plant LLC (‘issuer’ or ‘company’) and to its issue of registered coupon bonds (series A). The outlook on the ratings is stable. The amount of the issue is UAH50m, with 5-year original maturity. The company’s core business is production of meat and meat products. In the course of analysis Credit-Rating considered issuer’s financial statements for 6M2009 and its other inside information.
An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
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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The issuer is associated with legally informal Globyno group of companies, which enjoys strong standing in the national sector of meat and meat products.
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Growth in performance indicators of Globyno group in 1H2009 versus those in 1H2008: the net sales earnings advanced 19.4% to UAH268m; the net profit soared 2.5x to UAH39.7m; the operating profitability increased by 7.6 percentage points to 14.8%.
Factors constraining the credit rating
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Risks associated with increasing debt burden in case full amount of series A is realized.
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Hot competition in the national sector of meat and meat products combined with shrunk purchase capacity of the populace.
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
