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11.05.2005
uaBB+ credit rating assigned to upcoming bond issue of the Spetstechosnastka Ltd.
Credit-Rating said today it assigned its “uaBB+” national scale long-term interest-bearing bond issue credit rating to Spetstechostnastka, Ltd. The amount of the planned issue is 10 million UAH for a term of three years. The company specializes in manufacturing of production tools, press molds, stamps, plastic and sheet metal details.
Positive factors considered at assigning of the credit rating:
- dynamic development in the last four years, considerable assets and own capital growth, volumes of which by the end of 2004 were 12,068,200 UAH and 4,844,200 UAH. Gradual increase of sales net weight, which grew 6 times in five years and amounted 15,867,100 UAH by the end of 2004;
- stable market, inside the country and abroad;
- present business diversification that allows decreased dependence on a single business sector;
- high profitability indices, demonstrated by the issuer for the last three years;
- the issuer has acquired international quality system certification for its main production types, thereby increasing its competitiveness on the local and
- international markets.
Negative factors considered while assigning the credit rating:
- low liquidity and net working capital indices;
- existence of liabilities under long-term bank credits amounting to about 5 million UAH secured by integral property complex and equipment;
- volume of funds planned to be obtained by placing bonds in amount of 10 million UAH exceeds own capital volume of the company twice and considerably increases the total liabilities load.
