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22.03.2006
"Credit rating" upgraded credit-rating of Lutsk Automobile Plant, Ltd to "uaBBB"
Today independent rating agency Credit-Rating announced the upgrade of a long-term credit rating of OJSC Litskiy Automobile Plant from "uaBBB-" to "uaBBB". Main trend of the companys activity is production of cars and trucks. For the rating revision Credit-Rating agency used the Issuers complete financial reports for 2005 as well as inside information provided by the company.
Credit-Rating agency also announced the "uaBBB-" to "uaBBB" upgrade of credit rating of registered interest-bearing bond issue by OJSC Lutskiy Automobile Plant in the amount of UAH 130 million with a circulation period of 5 years.
Factors supporting the credit rating's level:
- Growth of business performance factors of OJSC Lutskiy Automobile Plant in 2005: number of automobiles produced grew 40% year-over-year to 35.5 thousand units, annual production plan of VAZ automobiles the most popular cars in Ukrainian market is 101% fulfilled;
- Improved financial results of the companys activity in 2005: the companys net profit increased 3.3 times against 2004 to UAH 96.4 million, index of covering EBIT interest under current debt obligations came from 8.3 to 10.5 times;
- Planned increase of the companys own capital to UAH 1.1 billion in 2006 is to have a positive impact on financial independence showings.
Factors restricting the credit rating's level:
- The companys aggressive development strategy for the next 5 years to result in the increase of financial obligations to UAH 750 million in 2006;
- In case Ukraine joins the WTO, customs duties on cars are to decrease from 25% to 10% which will significantly intensify the competition on the part of foreign producers.
For more detailed information, please contact
us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
