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19.07.2010
Credit-Rating Upgrades PROVIANT LLC’s Bonds to uaBBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBBB- (uaBBB minus) from uaBB the long-term credit rating assigned to registered coupon bonds (series A) issued by Chernihiv-based Proviant LLC (‘issuer’ or ‘company’). The amount of the issue is UAH25m. The outlook on the rating has been changed to stable. The company’s principal activity is non-specialized trade with foodstuffs, beverages and tobacco products, and other types of wholesale trade. To revise the rating Credit-Rating considered issuer’s financial statements for 2009 and its other inside information.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by 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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Strengthening positions of PROVIANT group of companies, headed by the issuer, on the market of dairy cans, which are produced and sold under ICHNYA trade mark.
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Increased key figures of the group, in fact the group’s output rates increased by 34% over 2009 versus 2008, to 34.4 million of conditional cans.
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Diversification of markets and high share of exports in the sales structure.
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Changed structure of bank loans with a shift towards long-term borrowings, which eased pressure on the issuer’s liquidity.
Factors constraining the credit rating
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Issuer’s ambitious expansion strategy that envisages considerable investments with borrowed funds.
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The issuer’s sales portfolio is concentrated on a single type of produce (dairy cans).
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Absence of audited consolidated financial statements of the 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
