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09.03.2010
Credit-Rating downgrades Sumykhimprom OJSC’s bonds to uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaB from uaBB the long-term credit rating assigned to registered coupon bonds (series A, B) issued by Sumy-based Sumykhimprom OJSC (‘issuer’ or ‘company’). The amount of the issue is UAH100m. The outlook on the rating is stable. The company's principal activity is production of titanium dioxide, mineral fertilizers, colorants, and other products. In the course of analysis Credit-Rating considered issuer’s financial statements for 1H2009 and its other inside information.
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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Issuer’s market standing, which is one of the CIS’s biggest producers of titanium dioxide, mineral fertilizers and other chemicals.
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Diversification of markets and high specific gravity of export in the issuer’s sales structure.
Factors constraining the credit rating
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Poor issuer’s liquidity, which prompted breaches in schedule of payments by financial obligations.
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Issuer’s loss-generating performance, which is expected to continue in 2010.
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Risks associated with fluctuations of prices, severe competition and high capital capacity.
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
