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18.05.2005
uaA credit rating assigned to upcoming bond issue of the ACLR n. Shevchenko
Credit-Rating said today it has assigned its “uaA” national
scale long-term interest-bearing bond issue credit rating to Shevchenko, Ltd. The
rated company is a part of Veres group and specializes in agricultural production
and
processing.
Positive factors considered while determining the credit
rating:
- the company operates in a growing market and efficiently consolidates its raw
materials base and agricultural processing units; - membership in the Veres group ensures effective production and
sales
management as well as marketing under well-known trade marks; - net sales volume of the company for 2002-2004 grew 12.7 times and at the
end
of 2004 amounted to 30.5 million UAH; net profit grew 16 times and amounted to
8.98 million UAH; - with the joining of the Cherkasy cannery, further substantial increases
in
production and sales volumes are forecast; - the company enjoys good current and general liquidity indices, and
high
profitability.
Negative factors considered while determining the credit rating:
- substantial dependence of the Issuer’s activity on Veres group business risks
as well as the risks caused by possibility of production volumes redistribution
among group members without reference to the Issuer’s interests; - presence of imbalances in the structure of assets and liabilities
resulting
from the Issuer’s intensive development in recent years; - instability of the legislation that regulates activity in the field
of
agricultural production and processing can negatively influence financial
results of the company and complicate strategic plan fulfillment.
