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17.11.2005
“uaBB” credit rating assigned to upcoming bond issue of Konstantinovskiy metallurgical hardware plant Ltd
Today the independent rating agency announced a long term «uaBB» rating assignment to the issue of registered interest bearing bonds of «Konstantinovskiy metallurgical hardware plant» Ltd for 25,5 million UAH with ten year circulation period with repurchase option. The plant’s major field is the produce of exchangeable water chilling equipment for metallurgic industry. In the process of analyzing «Credit-Rating» agency has used a complete financial statement of the plant, as well as internal information, given by the issuer.
Factors supporting the rating level:
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dynamic growth of the plant’s performance indices during its existence: in 2002 through September 2005 net sales grew up 4, 3 times, net income average multiplication was 3 times a year;
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for the last 2,5 years the issuer sustained high rates of financial stability and profitability;
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the issuer owns the know-hows for the both current and developing production.
Factors restricting the rating level:
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the issuer’s risks are caused by the preplanned and significant expansion of the plant’s activities;
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the issue volume is 18 times more than the assets and 4,5 times more than net sales volume of the issuer as of the December 31, 2004;
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the project’s realization directly depends on timely and successful allocation of the rated issue of the bonds;
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relatively short term of the plant’s functioning (since 2002) and the significance of the preplanned changes in its activities impede the prospecting of the issuer’s activities for the bonds’ circulation period (10 years).
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 Victoria Kolomiets,
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
