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04.01.2006
“uaBBB” credit rating assigned to upcoming bond issue of TC "Intermarket" Ltd
Today, independent rating agency Credit-Rating announced the granting a long-term "uaBBB" credit rating to the issuance of registered interest-bearing bonds (D, E series) by trading company Intermarket, Ltd. in the amount of UAH 50 million with a circulation term of three years.
The company’s activities are wholesale and retail trade through its own trade net.
Positive Factors affecting the credit rating:
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The issuer is one of the largest Western Ukrainian trading companies that integrates the net well known in the region, the net consisting of 16 discount stores Barvinok, three supermarkets Arsen and four trade centers Intermarket (two of them are Cash & Carry format);
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The growth of assets of the issuer in five past years and nine months of the last year by 15 times to UAH 175.4 million; also the increase of volumes of goods turnover from UAH 90.6 million in 2000 to 428.1 million in 2004;
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Eight-fold increase of operating activity income in five years up to UAH 13,055.6 thousand which demonstrates of the growing effectiveness of the issuer’s activity;
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The issuer has over 17 percent of the Lviv market and 10 percent of the Lviv region market and is intensifying its regional positions through expanding its trade net;
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Favourable situation in the regional market due to low competition and the population’s rising solvency;
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Positive experience in placing and serving two previous bond issues outstanding now.
Negative factors affecting the credit rating:
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Low profitability due to considerable volume of expenditures to pay interest for credits and bonds;
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The issuer’s high dependency on loans; company’s summary liabilities/assets ratio as of Sept. 20, 2005 was 96 percent;
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High risks due to the issuer’s ambitious development strategy that could be vulnerable in case of possible emergence of large market players.
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 Dmitriy Zadesenets
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
