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12.05.2006
uaA credit rating assigned to upcoming bond issue of "Darnitsky zavod ZBK", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaA credit rating to the scheduled registered interest-bearing bond issue (G series) by OJSC Reinforced Concrete Plant of Darnitsa (Kyiv) in the amount of UAH 5 million with a circulation period of 3 years. The plants main activity is production of building materials: reinforced concrete structures, wall blocks, ready-mixed concrete, mortar, building metal structures.
Factors supporting the credit rating's level:
- The Issuer has more than 50 years of experience in production of building materials, about 90% of which are sold in the market of Kyiv, that showed the growth of construction volumes in a few last years;
- The Issuer has a successful experience of issuing, serving and redeeming bonds of six previous issues with total volume of UAH 6.9 million;
- The scheduled volume of bond issue is almost 4 times less than the Issuers owned capital as of 12.31.2005 and is comparable to net revenue of 2005;
- High performance over the past five years: as of 12.31.2005 financial independence coefficient 0.61, sales profitability 8.3%, EBITDA profitability 16.2%.
Factors restricting the credit rating's level:
- The Issuers production and sales activity is susceptible to changes in prices on main components of product prime cost, in particular on cement and metal;
- Decrease of the Issuers liquidity showings by the end of 2005 and insufficient net working capital;
- Intense competition in the market of production of building materials in Kyiv.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
