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13.07.2006
uaA- credit rating assigned to upcoming bond issue of City.com, Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaA- credit rating to the registered interest-bearing bond issue by Citycom Ltd (Kyiv) in the amount of UAH 50 million with a circulation period of 5 years. The companys main activity is retail trade of information and communication technologies through cash&carry hypermarket network.
Factors supporting the credit rating's level:
- Citycom Ltd is an operator of electronics hypermarket trade network and the leading company in the information and communication technology market, its revenues UAH 5-9 thousand per 1 sq. m. of trading area;
- the Issuers membership in AVentures Group holding that has a large working experience in the ICT market of Ukraine, generating annually about UAH 2 billion of income from sales and receiving over UAH 30 million of EBITDA;
- guaranty on bonds on the part of Unitrade 2000, Ltd (member AVentures Group holding) specialized in real estate management and is the main holder of the books of the groups fixed assets (the guarantors fixed-capital assets are 1.3 times larger than the issue volume);
- growth of the Issuers assets by more than 6 times in 2005 year-over-year to UAH 77.8 million, of net sales incomes by 9 times to UAH 163.2 million;
- high level of corporate management: modern Business Intelligence systems allow optimizing all business processes of the Issuer and the holding.
Factors restricting the credit ratings level:
- risks related to the aggressive development strategy of the Issuer and the holding;
- growing competition in the electronics retail market of Ukraine.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
