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15.06.2006
uaBBB credit rating assigned to upcoming bond issue of "Yenakievskiy metallurgicheskiy zavod", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaBBB credit rating to OJSC Yenakievskiy Metallurgical Plant (Yenakievo, Donetsk region). The companys main activity is production of cast iron and steel.
Factors supporting the credit rating's level:
- Yenakievskiy metallurgical plant has over a hundred years of experience in production of metal products of all processing levels and employs pneumatic steelmaking method which enhances its competitive ability among other Ukrainian metallurgical enterprises;
- metallurgical industry provides about 30% of Ukrainian GDP and is Ukrainian specialization in the world division of labor due to the countrys supply with own raw material resources (iron and manganese ore, coal) and developed infrastructure;
- membership of YMP in large financial and industrial group System Capital Management gives the company an access to raw material, financial resources and provides effective system of product distribution;
- changes in the administrational system of OJSC YMP and improved financial and economic performance in the first quarter 2006, in particular, net income in the amount of UAH 10.3 million.
Factors restricting the credit rating's level:
- lack of cyclical turnaround due to the transfer of part of fixed-capital assets in the authorized fund of SP Metalen Ltd;
- unprofitable operating activity of YMP in 2002-2005;
- risks of redistribution of money flows and production capacities inside the company group without consideration of interests of YMP;
- susceptibility of Ukrainian metallurgical enterprises as net exporters to changes of exchange rates, external economical situation and uncertainty in natural gas prices.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
