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16.01.2006
“uaBB” credit rating assigned to upcoming bond issue of the Ukrainian automobile holding Ltd
Today, independent rating agency Credit-Rating announced the granting of a long-term "uaBB" credit rating to the scheduled registered interest-bearing bond issue by Ukrainian Automobile Holding, Ltd. in the amount of UAH 100 million with a circulation period of five years. The company sells Ukrainian and foreign automobiles.
Factors supporting the credit rating’s level:
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Ukrainian Automobile Holding, Ltd. is a part of Bohdan Inc., which ensures its leading position by selling certain car brands produced by the OJSC Lutskiy Automobile Plant, also a part of Bohdan, Inc., and ensuring other competitive advantages;
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The issuer’s dynamic progress: from 2003 to the first nine months of 2005, assets increased 1.74-fold and the net volume of sales increased from 2003 to 2004 by 1.6 times.
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Ukrainian Automobile Holding, Ltd. is one of the leading Ukrainian car sales companies through its territorially developed trade network.
Factors restricting the credit rating’s level:
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The amount of the company’s authorized fund is UAH 11.8 thousand (0.0054% of the balance currency) and remains unchanged in spite of the issuer’s growth;
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Low index of backing of EBITDA interests on the issuer’s debt liabilities (1.15 in 2004 and 1.33 in the first nine months of 2005) and possible decline of this index in view of the scheduled considerable increase of debt burden;
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Since 2003 the financial independency index of Ukrainian Automobile Holding, Ltd. has not exceeded 0.01;
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Risks of the issuer’s activity are tied to the risks of Bohdan Inc.;
- Possible worsening of situation in the car market in low price segment in the course of the bond circulation period.
Should you need more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
