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14.02.2006
“uaBB+” credit rating assigned to upcoming bond issue of "BRIKET" Ltd
Today independent rating agency Credit-Rating announced granting of a long-term "uaBB+" credit rating to registered interest-bearing bond issue by OJSC Briket in the amount of UAH 20 million with a circulation period of 7 years. The main trend of the company’s activity is coke and coal brick production from coal breeze and environmentally compatible adhesives.
Factors supporting the credit rating’s level:
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OJSC Briket is the only producer of environmentally compatible coke bricks used in metallurgical production and food industry in Ukraine and CIS;
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The enterprise is a member of industrial and financial group Concord that actively manages research in metallurgical, chemical and extracting industries and constantly helps to upgrade the issuer’s production technologies;
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Expected growth of demand for coke bricks as a substitute energy source for coke and natural gas;
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High performance of the enterprise over the 2 past years;
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As of 09.30.2005 fast liquidity coefficient was 2.2; financial independence coefficient – 0.73; cost effectiveness of the plant’s produce – almost 30%, sales efficiency – 9.1%.
Factors restricting the credit rating’s level:
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Short period of the enterprise’s operation after production restructuring which complicates forecasting its development dynamics for the whole period of bond circulation;
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As of the end of Sept., 2005 the issuer’s uncovered losses are UAH 1.1 million;
- All issuer’s real estate is mortgaged on bank credits.
Should you need more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
