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02.07.2010
Credit-Rating Downgrades Meest Express 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 A) issued by Lviv-based Meest Express LLC (‘issuer’ or ‘company’). The amount of the issue is UAH25m. The outlook on the rating is stable. The company’s principal activity is shipping and delivery of cargoes and small packages within Ukraine. To revise the rating Credit-Rating considered issuer’s financial statements for 2H2009 and full 2009 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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A guarantee provided by SP Rosan LLC, which is one of the issuer’s founders and belongs to legally informal group of companies.
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Issuer’s wide-spread branch network, specifically the company’s offices operate in all Ukraine’s oblast centers.
Factors constraining the credit rating
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Poor issuer’s payment discipline towards bondholders.
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Issuer’s loss-generating performance over the entire period of its operations.
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Risks associated with redistribution of funds within the group neglecting issuer’s interests.
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Hot competition in Ukraine’s shipping market.
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
