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14.06.2006
uaBB- credit rating assigned to upcoming bond issue of "Zaporozhskiy plemptitsesovkhoz-reproduktor ", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaBB- credit rating to OJSC Zaporozhskiy Collective Breeding Poultry Multiplying Farm. The companys main activity is breeding agricultural crops and livestock.
Factors supporting the credit rating's level:
- optimization of operation in 2003 which resulted in the enterprise abandoning the unprofitable kind of activity (livestock breeding) and concentrating on crop raising and poultry keeping;
- high showings of profitability and financial stability during 2004-2005: sales profitability was 33% and 51%, financial independence showings were 0.9 and 0.5 respectively.
Factors restricting the credit rating's level:
- unstable results of financial and economic activity over the past 5 years;
- the companys high susceptibility to the condition of agricultural and industrial complex, in particular, the crop yield and the state support to agroindustrial complex;
- low liquidity showings as of 12.31.2005 and negative value of net working capital (-UAH7.1 million);
- risks related to the considerable scheduled expansion of the companys operation.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
