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31.03.2006
“uaA-” credit rating assigned to upcoming bond issue of JSLC "Ukrshampinyon"
Today independent rating agency Credit-rating announced the granting of a long-term "uaA-" credit rating to the scheduled registered interest-bearing bond issue (D series) by CJSC Ukrshampinyon in the amount of UAH 25 million with a circulation period of 2 years. The main trend of the companys activity is cultivation, processing, preservation of mushrooms and other agricultural products.
Factors supporting the credit rating's level :
- CJSC Ukrshampinyon operates in the growing market, it combines territorially raw material base and agricultural procession;
- The issuers membership in Veres company group secures effective management of production and marketing activities as well as sales of products under famous trade marks;
- The issuers assets grew during 2003-2005 by 2 times to UAH 86.8 million, net volume of product sales by 3 times to UAH 59.1 million, net income by 1.8 times to UAH 10.9 million;
- High rates of the issuers returns, in particular in 2005 EBITDA profitability was 28.1%, return on assets 12.6%;
- The issuer is less susceptible to seasonal factors compared to other agricultural producers and processors;
- Possible guaranty on the bond issue, the agreement of guaranty is to be signed with CJSC Agroecoproduct at will of bond holder.
Factors restricting the credit rating's level :
- Activity of CJSC Ukrshampinyon inside Veres group poses a risk of redistribution of production capacities and monetary aggregates among the group companies without taking into consideration the issuers interests and makes it susceptible to risks of financial and economic activity of the whole Veres group;
- Nearly all production capacities of the issuer are under mortgage according to the agreement of property suretyship with CJSC Agroecoproduct;
- Unstable legislative norms regulating activity in agricultural production and procession which can have a negative impact on the companys financial results and complicate realization of its strategic plans.
For more detailed information, please contact
us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
