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15.02.2006
“uaBBB” credit rating assigned to upcoming bond issue of "TAVRIYA-B" Ltd
Today independent rating agency Credit-Rating announced granting of long-term uaBBB credit rating to registered interest-bearing bond issue by Tavria-V, Ltd (B, C series) in the amount of UAH 40 million with a circulation period of 3 years. Main trend of the companys activity is organization of retail trade of food and non-food products in supermarkets and construction of modern trade complexes.
Factors supporting the credit rating s level :
- Tavria-V, Ltd has almost 10 years of working experience in retail market and construction of trade facilities in Odessa region, and Tavria-V supermarket network of 12 stores is a leader in turnover volumes in the city of Odessa and one of the ten largest trade networks in Ukraine (according to results of 2004);
- The issuers high growth rates over the past 5 years: total volume of the companys assets grew by 20 times to UAH 174.6 million, net sales income by 7 times and amounted to UAH 220.8 million in the first nine months of 2005;
- The issuer has successful experience of serving and redeeming bonds in the amount of UAH 5 million;
- The volume of scheduled issue is equal to 50% of the owned capital as of 10.01.2005;
- Rapid development of home trade market over the past 3 years (average annual increase of retail turnover of goods is over 20%);
- Odessa is a leader among the regional centers of Ukraine in growth rates of prices on purchase and rent of trade facilities.
Factors restricting the credit rating s level :
- The issuers dependence on redistribution of funds inside the company group which manages trade through Tavria-V supermarket network;
- By the end of 2005 almost all issuers property was mortgaged on bank credits;
- Low efficiency of the company during the whole period of operation, in particular sales profitability is less than 7% and assets profitability is 10%;
- Growing competition in retail market of Ukraine on the whole and in Odessa region in particular.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
