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13.06.2005
Credit-Rating awards “uaBB” rating to bonds of Shkoliarik, Ltd.
June 13, 2005 -- Independent rating agency Credit-Rating announced Monday it award of a long term “uaBB” credit rating to the preplanning of issuance of registered interest bearing bonds by Shkoliarik, Ltd. publishing house in the amount of 5 million UAH for a 3 year circulation period. The company’s principal business is production of an assortment of office and school notebooks and pads.
Positive factors that were taken into account in the rating:
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The increase in the issuer’s assets during 2001-2004 was 1.8 to 17.5568 million UAH and its production net sales volume increased 5.5 times to 38.9077 million UAH;
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The company sells its production in all regions of Ukraine through a well-organized network of dealers that allows the issuer to cover 16-20 percent of the market.
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The firm’s well-known brand of note-books for schoolchildren under the trade name “Shkoliarik” is positioned in the Ukrainian market as a superior quality product;
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The company has a wide range of products, and constantly updates and improves the line;
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The firm diversifies it sales market through exports;
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The amount of bonds to be issued (5 million UAH) equals one eighth of the net sales production volume in 2004 and the third part of the assets;
Negative factors that were taken into account in the rating:
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The issuer operated at a loss in 2002 and the first quarter of 2005;
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The issuer’s dependence on borrowed money; total obligations correlation to assets at the end of March 2005 was equal to 89.4 percent of capital funds and part of the production is in pledge;
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An expected downturn in the market tempo for the company’s notebook production as well as high competition in this market and demand that is seasonal in nature for this kind of production.
