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08.07.2005
uaBBB- credit rating assigned to Ukrainian Metallurgic Company, Ltd.
Today independent rating agency “Credit Rating” announced about awarding of a long term “uaBBB-” credit rating to “Ukrainian Metallurgic Company” Ltd. The company is a metal trader and it represents interests of a number of metallurgic enterprises in warehousing, wholesale supplies, retail sale of rolled stock and steel products.
Agency “Credit Rating” also announced about awarding of a short term “uaK3” credit rating to the issuance of registered interest bearing bonds of “Ukrainian Metallurgic Company” Ltd. in the amount of 100 million UAH for 1 year circulation period.
Positive factors that were taken into account in the rating:
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Increase of the net sale volume for 5 years in 57,3 times and up to 1 878,2 million UAH with the simultaneous representative offices network broadening in Ukraine;
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The company belongs to the 5 largest metal traders in Ukraine (14% of the rolled stock sale market) and has a broad network of representative offices;
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The company’s low dependency level on bank borrowed funds (3,7% of the currency balance);
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Stock capital growth during 5 years (in the 1st quarter of 2005 it made up 22,0 million UAH);
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“Ukrainian Metallurgic Company” Ltd. is the only company among other metal traders that has the conformity standard certificate in the quality management system ISO 9001-2000.
Negative factors that were included in the rating:
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Possible difficulties in the activity of “Ukrainian Metallurgic Company” Ltd. at the local market that might be caused by the decrease of production volumes of metallurgic complexes due to sharp decline in world prices on metal;
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The tendency to the first costs ratio increase in the net sales volume for the 5 years from 79% to 95 %;
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The emitters high dependency level on the activities of Corporation “Industrial Donbass Union”. (The corporation is the main production supplier for “Ukrainian Metallurgic Company” Ltd.-80% of supplied production;
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149,2 million UAH or 86% of other debtor indebtedness of “Ukrainian Metallurgic Company” Ltd. belong to “Industrial Donbass Union”;
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81% or 249,1 million UAH of credit indebtedness for the production of “Ukrainian Metallurgic Company” belong to the corporation “Industrial Donbass Union”, 100% of long –term liabilities of “Ukrainian Metallurgic Company” or 236,5 million UAH belong to “Industrial Donbass Union”.
Information about all ratings in 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 и BLOOMBERG.
In order to get more detailed information please contact
Olga Shubina , Kyiv (044) 490-25-50, 490-25-54,
