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15.11.2005
“uaA-” credit rating assigned to upcoming bond issue of CJSC "Kyiv-Konti"
Today the independent rating agency announced the assignment of a long term «uA-» credit rating to the issue of registered interest bearing non-documentary bonds of СJSC «Production association «Kiev-Konti» for 80 million UAH with three year circulation period. The company is one of the biggest confectionery producers in Ukraine. In the process of analyzing «Credit-Rating» agency has used a complete financial statement of the issuer, as well as internal information, given by the company, including the one already owned by the agency and considered to be reliable.
Factors supporting the rating level:
СJSC «Production association «Kiev-Konti» is one of the biggest confectionery producers in Ukraine, providing 11,3% of the market, e. g. the company is the leader of biscuits production (23% of production) and caramel production (10,4%);
Production and sales risks diversification, conditioned by the owning of three factories in Ukraine and one in Russia;
Issuer’s dynamic growth through its functioning period: for the recent 5 years the production volume grew 2,5 times (to 126,3 thousand tons), net income – 10 times (to 42,4 million UAH), assets – 6 times (to 314,5 million UAH);
High liquidity and profitability indices: general liquidity ratio by the end of 2004 totalled 1,7, sales profitability – 7,8% and assets profitability – 18,1%
Factors restricting the rating level:
Negative value of net working capital caused the company’s dependence upon the borrowed funds; the property of СJSC «Production association «Kiev-Konti» is mortgaged to the bank;
There are risks caused by the ambitious development strategy chosen;
Confectionery industry is influenced by the sugar and flour market volatility and also by trading limits of main importers countries.
Information on the assigned credit ratings according to the Ukrainian national scale is available at the internet site of «Credit-Rating» company www.credit-rating.com.ua, as well as in informational systems of REUTERS and BLOOMBERG
Should you need more detailed information, please contact Anastasia Golovach,
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
