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22.04.2010
Credit-Rating downgrades Briket 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+ (uaBB plus) the long-term credit rating assigned to registered coupon bonds (series A) issued by Donetsk-based Briket OJSC (‘issuer’ or ‘company’). The amount of the issue is UAH20m with 7-year original maturity. The outlook on the rating is stable. The company’s principal activity is processing of waste industrial materials, of small fractions of coke, concentrating and ferroalloy production by making briquettes on the basis of ecologically pure adhesive materials. To revise the rating Credit-Rating considered issuer’s financial statements for 4Q2009 and full 2009 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 standing in Ukraine’s sector of coal and coke briquettes.
Factors constraining the credit rating
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Issuer’s sales have dropped by 38% in 2009 versus 2008, coupled with loss-generating performance in 2008 and 2009.
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Low diversification of issuer’s sales structure: in fact, in 4Q2009 the specific gravity of two main issuer’s customers was recorded at 98% and 95% of issuer’s sales, respectively in monetary and natural volumes respectively.
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Company’s loss-generating performance in 2007-2009.
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Cyclicality in metallurgical sector.
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A major part of issuer’s property is pledged as security for a bank loan.
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
