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16.11.2005
Assignment of «uA+» credit rating to OJSC Khartsizskiy pipe plant
Today the independent rating agency announced a long term «uA+» rating assignment to OJSC «Khartsizskiy pipe plant» according to the Ukrainian national scale. The prospect of the rating is positive. The plant is the biggest producer of large diameter pipes in CIS. The rating reflects financial stability of the counterparty in the whole. In the process of analyzing «Credit-Rating» agency has used a complete financial statement of the plant, as well as internal information, including the one received during the meeting between rating agency’s specialists and authorized representatives of OJSC «Khartsizskiy pipe plant»
Factors supporting the rating level:
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OJSC «Khartsizskiy pipe plant» is the most powerful plant in Ukraine and one of the largest pipe plants in Europe, it has almost 100-year experience and produces wide range of pipes;
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The plant’s entrance into the vertically integrated financial-industrial group «System Capital Management» guarantees the access to the steel strips of the highest quality in Ukraine (OJSC “Azovsteel”) and provides low production cost level against other plants in CIS;
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The plant is the only producer of 1420 mm diameter pipes in Ukraine and one of the largest suppliers of such produce on CIS markets. The plant exports also outside CIS, specifically to Iran, Syria;
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Positive prospect of the growing demand for the oil and gas pipeline built worldwide;
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High indices of financial strength, e. g. financial independence ratio in 2004 was 64%;
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Effective management system of the plant.
Factors restricting the rating level:
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There are risks dealing with the plant conversion into the new scheme of job organization: direct purchase of raw materials and sale of finished produce;
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Putting into operation the facilities for 1420 mm straight-seemed pipes in April 2005 in Russian OJSC “Viskunskiy plant” may limit OJSC «Khartsizskiy pipe plant» position on its major sales market;
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The plant is influenced by the volatility of steel prices and as a net-exporter, by the trading restrictions and the rate of exchange;
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Large scale of preplanned investment;
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Plant’s dependence upon “SCM” group, which activity risk is an integral part of the analyzed enterprise.
Information dealing with all 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)
