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11.08.2006
uaBB credit rating assigned to upcoming bond issue of UkrTekhnoFos, Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaBB credit rating to the interest-bearing registered bond issue (C series) by UkrTekhnoFos Ltd (Rivne) in the amount of UAH 7 million with a circulation period of 3 years. The company’s main activity is production of compound fertilizers, as well as wholesale and retail trade of fertilizers, pesticides and agricultural chemicals.
Factors supporting the credit rating’s level:
- The Issuer produces compound mineral fertilizers, demand for which kept growing in the recent years, the Issuer’s share in this market increased from 6% to 7% in 2005;
- the Issuer has successful experience in issuing, servicing and redeeming A series bonds;
- the Issuer’s dynamic development over the past 5 years: net sales volume grew 16 times to UAH 57.6 million, total balance – 21 times to UAH 14.4 million, owned capital came up from UAH 0.04 million to 2.3 million (including 1st quarter 2006);
- effective management decision making that enables the company to respond promptly to environment changes.
Factors restricting the credit rating’s level:
- the Issuer’s activity is susceptible to changes in state policy in the agroindustrial complex which affects rates of production and sales of mineral fertilizers;
- large share of debt obligations in the liabilities structure: total obligations made up 92% of the liabilities the end of March 2006;
- funds to be raised through the bond offering in the amount of UAH 7.0 million are
three times more than the Issuer’s authorized fund.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
