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19.09.2005
“uaBBB+” credit rating assigned to upcoming bond issue of the Druzhkovskiy hardware plant
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 Druzhkovskiy Hardware Plant in the amount of 3.3 million UAH for a one year period of circulation. The plant produces mounting hardware for the machine-building industry, railway and other kinds of mounting hardware.
Factors holding the rating:
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dominant position of the issuer in the mounting hardware (for machine-building industry and railways) market in Ukraine, the Russian Federation and Central Asia (82% for first seven months of 2005), the plant makes up 20% and 40% of the market segment correspondingly;
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the issuer’s close connections with its main contractors;
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the financial results from the first half-year work made up almost 97% of last year’s financial results;
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the issuance volume covers 2.8% of the issuer’s net volume of production sale for 2004 and less than net profit volume of the plant that was received for the first half-year in 2005;
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comparatively good indexes of capital structure.
Factors that restrict the rating:
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considerable dependency of the plant on the situation in the metal market and restricted resources and possibilities in case of changing the metal suppliers for mounting hardware production.
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fFluctuations of main activity indexes of the issuer during 2001-2004;
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tougher economic conditions in the metal market in Ukraine;
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introduction of mounting hardware producers from the countries in the Far East to the market of machine building industry strengthens competition in the markets of Western Europe and the U.S.A. where the issuer is planning to expand its presence.
Information about ratings in Ukrainian national scale is available at the internet site of the company Credit-Rating at www.credit-rating.com.ua.
In order to get more detailed information please contact Victoria Kolomiets, Kyiv +38 (044) 490-25-50, 490-25-54, finance@credit-rating.com.ua
