uaBBB- credit rating assigned to upcoming bond issue of "UkrAgro NPK", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaBBB- credit rating to the scheduled registered interest-bearing bond issue by CJSC Ukragro NPK (Cherkassy region) in the amount of UAH 15 million with a circulation period of 3 years. The companys main activity is production and sales of compound fertilizers and also sales of mineral fertilizers of other producers
Factors supporting the credit rating's level:
- The Issuer produces mineral fertilizers fertilizer mixtures, the demand for which kept growing in the recent years, the companys share in this market was over 10% in 2005;
- The Issuer is a member of Linas Agro group, one of the leading companies in Baltic countries in processing and sales of agricultural products;
- Growth of net sales volume over 2002-2005 from UAH 5.1 million to 110.6 million, the increase of net income volume from UAH 0.3 million to 1.6 million;
- The scheduled bond issue is smaller in volume than the Issuers owned capital (UAH 16.9 million).
Factors restricting the credit rating's level:
- the companys activity is susceptible to changes in state policy in agricultural and industrial complex which affects the level of production and sales of fertilizers;
- rather low showings of the Issuers profitability and liquidity, in particular, the sales rofitability index was never higher than 1.5% in the past two years, the general liquidity index 1.3%.
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