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11.07.2005
uaBBB credit rating assigned to upcoming bond issue of the Intermarket, Ltd.
Independent rating agency Credit-Rating announced the award of a long term “uaBBB” credit rating to the issuance of registered interest bearing bonds (series B, C) of trading company Intermarket, Ltd. in the amount of 50 million UAH for a three year circulation period. The company is involved in whole-sale and retail sale.
Positive factors that were taken into account in the rating:
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The issuer’s assets increased for the last five years and in the first quarter of 2005 by nine times up to 113.5 million UAH and turnover volume increased from 90.6 million UAH in 2000 to 428.1 million UAH in 2004;
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Increase of operating profit indexes to 13,055,600 UAH (in 8 times) during five years, which indicates that the issuer’s activity efficiency increased;
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The issuer covers more than 17% of the market in Lvov and 10% of the market in Lvovsky region and it is expanding its position in the region to widen its own trade network;
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Favorable conditions in the regional market that are stipulated by low competition and growth of paying capacity;
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The issuer has positive experience in issuing and service of previous bonds emission of series A, which is in circulation now;
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The issuer is one of the largest trading companies in the Western Ukraine and it incorporates a well-known at the regional market network of 13 “Barvinok” discount shops, two “Arsen” supermarkets and four “Intermarket” shopping centers (two of which are in the Cash & Carry format).
Negative factors that were included in the rating:
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Low profitability indexes that are caused by substantial volume of expenditures that are connected with interest payments on credits;
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The issuer’s high dependency level on borrowed means; the correlation of joint liabilities of the company to its assets as on the end of March 2005 was 95.6%, 55.4% was current liabilities and 92% was a short-term creditor indebtedness;
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Higher risks connected with the issuer’s ambitious development strategy that can be vulnerable because big players might appear on the market.
Information about all ratings in the Ukrainian national scale is available at the internet site of the company Credit-Rating www.credit-rating.com.ua as well as in information systems REUTERS and BLOOMBERG.
In order to get more detailed information please contact Dmitriy Zadesenetz, Kyiv (044) 490-25-50, 490-25-54, cr@credit-rating.com.ua
