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04.08.2010
Credit-Rating Upgrades Galnaftokhim CJSC’s Bonds to uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBBB from uaBB the long-term credit rating assigned to registered coupon bonds (series C) issued by Lviv-based Galnaftokhim CJSC (‘issuer’ or ‘company’) for the amount of UAH30m. The outlook on the rating has been changed to stable. The company’s principal activity is trade with mineral fertilizers. To revise the rating the agency 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.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
- Issuer’s market standing in Ukraine.
- Company’s performance indicators rose in 2009 versus 2008.
- Issuer’s moderate debt burden.
Factors constraining the credit rating
- A great portion of issuer’s property is pledged as security for bank loans.
- Unstable demand for mineral fertilizers under adversities in Ukraine’s economy.
- Issuer’s violations of payment discipline by its obligations.
- Low entry barriers to the sector of mineral fertilizers trade.
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
