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11.08.2005
"uaBBB+" credit rating assigned to upcoming bond issue of OJSC Concern Xlebprom
Independent rating agency Credit-Rating announced the award of a long term
“uaBBB+” credit rating to the issuance of registered interest bearing
bonds of Open Joint Stock Company Concern Xlebprom, (series B,C) in the amount of 17
million UAH for a five year period of circulation. The company is active in the
production and sale of bread and bakery products.
Positive factors that were taken into account in the rating:
- The company is a parent company of a group that incorporates seven companies on grain cultivation, its processing, production and sale of bread and bakery products mainly in Lviv and Vinnitsya regions, and it provides its share in the market of these regions in the amount of 25% and 60% correspondingly;
- Increase of assets of the issuer during the two years of its existence and during the first half-year in 2005 made up 62% up to 73.4 million UAH, the growth of its own capital made up 43% up to 30.2 million UAH;
- The issuer’s strategy is aimed at creation of a closed-cycle production system;
- The issuer’s own capital exceeds almost 2 times the amount of the planned issuance;
- Profitability indexes growth and increase of financial self-sufficiency of the company in 2004 and in the first half-year in 2005.
Negative factors that were taken into account in the rating:
- The issuer, has not been operating as a interregional company for a very long period, it continues to broaden its activities and the latter complicates forecasting of its activities for the whole period of bonds circulation;
- The influence of administrative methods in bread and bakery products market regulations that can limit the business profitability;
- The activity of the issuer depends on the market situation, which on its turn depends on the state policy and climate and nature conditions.
Information about all ratings in Ukrainian national scale is available at the internet site of the company Credit-Rating at http://www.credit-rating.com.ua.
For more detailed information, please contact Dmitriy Zadesenets, Kyiv +38(044) 490-25-50, 490-25-54, cr@credit-rating.com.ua
