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30.08.2005
"uaBBB+" credit rating assigned to upcoming bond issue of Galneftechim
Today independent rating agency Credit-Rating announced that it awarded a long term “uaВВВ+” rating to the issue of registered interest bonds by Galneftechim for the amount of UAH five million with a term of circulation of three years. The main area of the company's activities is sale of mineral fertilizers.
Positive factors taken into account in the rating:
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the issuer is one of the largest trade companies in western Ukraine which sells mineral fertilizers and other products for the agricultural sector through a regionally known network of 11 agricultural centers and three agricultural “Farmer” shops;
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the company occupies about 35% of the market in five regions of western Ukraine and is strengthening its regional positions by expanding its own trading network, with an advantage in the availability of warehouse facilities;
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the growth of the issuer's assets throughout last five years and the first six months of 2005 by eight times up to UAH 27 million, increase of its own capital by 16 times up to UAH 13.3 million, as well as the increase of goods turnover from UAH 31.3 million in 2000 to UAH 99.63 million in 2004;
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ten-year positive experience of the issuer in the field of trading goods for the agricultural sector;
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the amount of the issue (UAH 5 million) is 2.5 times less than the size of own capital and comparable with the volume of net income per results for the first six months of 2005.
Negative factors taken into account in the rating:
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absence of stable performance of financial and economic activities within the last five years;
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the issuer's activities are susceptible to fluctuations of market conditions and natural and climatic conditions;
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dependency upon state policy in agricultural complex;
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increased volatility of solvent demand for the goods offered in the agricultural sector.
Information about ratings on the 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.
