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29.06.2010
Credit-Rating Downgrades ARTA Securities LLC’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 B) issued by Kiev-based ARTA Securities LLC (‘issuer’ or ‘company’). The amount of the issue is UAH30m. The outlook on the rating is stable. The company’s principal activity is securities trading and brokerage. To revise the rating Credit-Rating considered issuer’s financial statements for 4Q2009 and 1Q2010 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.
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 the group of companies which have extensive experience in Ukraine’s financial market under ARTA brand.
Factors constraining the credit rating
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The issuer has failed to meet its commitments on obligations of series B bonds, which prompted claims for recovery of indebtedness.
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Considerably deteriorated environment in the financial market, which had negative impact on issuer’s indicators^ specifically the issuer’s loss in 2009 exceeded UAH11.7m.
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Poor diversification of issuer’s securities portfolio, which contributes to over 2/3 of issuer’s asset balance as at Apr. 1, 2010.
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Risks associated with redistribution of cash flows within the group of companies under ARTA brand neglecting issuer’s interests, coupled with issuer’s vulnerability to risks of the entire group.
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
