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16.08.2005
"uaBBB" credit rating assigned to upcoming bond issue of Cherkaskya Paltry Factory Ltd.
Independent rating agency Credit-Rating announced the award of a long term “uaBBB” credit rating to the issuance of registered interest bearing bonds of Cherkaskya Paltry Factory Ltd. in the amount of 15 million UAH for a three year period of circulation. The company’s business is raising and sale of chicken broilers.
Positive factors that were taken into account in the rating:
- Intensive and well-balanced growth of the main activity indexes of Cherkaskya Paltry Factory Ltd. during last two and a half years; the volume of assets from Jan. 1, 2003 till Jan. 7, 2005 increased in 47 times and it made up 35.5 million UAH, the issuer’s net volume profit increased from 1.13 million UAH (in 2003) to 4.03 million UAH (in 2004) and 8.41 million UAH during the first half year of 2005;
- Intensive development of chicken meat market during recent years and its growth in the corresponding according to specialist forecasts, as well as minimum competence level in regional markets;
- Cherkaskya Paltry Factory Ltd. has a well-balanced program of production development and it fulfils it in a orderly way with the support of the British investor;
- The issuer has well-established connections with its main counteragents and it can bank upon their support while continuing its business.
- Well-maintained record keeping management of the company permits the company to carry on efficient production and sale management activities of the enterprise.
Negative factors that were taken into account in the rating:
- The issuer has been in broiler poultry business (raising and sale of chicken broilers) for only two and a half years;
- The big players in this market (competitors of the issuer) have well-developed production capacities and considerable potential for development, have created big production groups and already have achieved practically closed-cycle production, as well considerable experience in the paltry & food industry;
- The issuer has not been the owner of the brand “Pannochka,” and sales network the enterprise carries on promotional expenses on the brand “Pannochka” and expenses on sales network development.
