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15.09.2005
uaA credit rating assigned to the Aerosvit, Ltd.
Independent rating agency Credit-Rating announced the award of a long term “uaA” credit rating to Closed Joint Stock Air Company Aerosvit on the Ukrainian national scale. The company’s business is domestic and international passenger service and carriage by air and road (trucking). The credit rating that is awarded to the company reflects financial stability of the contractor as a whole.
Factors holding the rating:
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Aerosvit is the leader of international air carriage in the Ukrainian market. As of April 1, 2005 the company’s market segment was 35% (it was 16% in 1999);
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the company has the most up-to-date fleet of airplanes (12) in the country, including 2 long-distance airplanes, which provides the company a number of competitive advantages in the Ukrainian air carriage market;
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during the last five years there has been an improvement in the passenger seat loading index which was estimated at 75.2% in 2004 made up and comparable to the indexes of a number of global air companies;
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increase of the main financial indexes during 2000-2004, assets growth (from 80 to 400 million UAH), owned capital increase (up to 81.9 million UAH), increase of net volume sales (from 235 to 931 million UAH);
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highly qualified management team of Aerosvit, which has considerable specialized work experience in aviation, in particular in the sphere of providing flights safety measures;
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well organized system of corporate management.
Factors that restrict the rating:
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in 2000, 2002 and 2003 the owned capital of the issuer had negative value as the result of considerable volume of uncovered losses (19.8 million UAH as of January 1, 2005);
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the activities of the company depend on seasonality: the first quarter accounted for only 17% of annual transportation and fright operations, which caused low financial results during this period;
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the tendency toward aviation petrol price rise, which makes up 25% of all total expenses of the company and stimulates further rise of price in service costs.
Information about all ratings in the Ukrainian national scale is available on the site of the company Credit-Rating www.credit-rating.com.ua.
In order to get more detailed information please contact Sergey Baklazhenko Kyiv +38(044) 490-25-50, 490-25-54, rating@credit-rating.com.ua.
