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17.04.2006
"uaBB" credit rating assigned to upcoming bond issue of "Ukrskloprom", Ltd
Today independent rating agency announced the granting of a long-term uaBB credit rating to the registered interest-bearing bond issue by CJSC Ukrskloprom (Kherson) in the amount of UAH 20 million with a circulation period of 7 years. The main trend of the companys activity is production of both standard and custom glass containers of any kind of complexity.
Factors supporting the credit rating's level :
- The company produces a wide range of glass jars, their output and sales volumes letting the company take up to 20% of the Ukrainian market;
- Increase of assets of CJSC Ukrskloprom during 2002-2005 to UAH 109.0 million and profitable activity: total volume of net revenue amounted to UAH 7.4 million;
- The Issuers owned capital by 1.3 times exceeds the total volume of the bond issue.
Factors restricting the credit rating's level :
- Unstable results of financial and economical activity over the period of existence owing to the issuers high dependence on the condition of the agro-industrial complex, in particular crop yield and support to agro-industrial complex on the part of the government;
- Redeployment of funds due to considerable reserve and end product volumes stored by the end of the year (up to 35% of annual net sales volume) which are slow in liquidity in the first half of the next year;
- The companys production and marketing activity is susceptible to rise of prices on basic components of the products prime cost (natural gas and soda), as well as to the import of glass jars.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
