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18.08.2006
uaAA credit rating assigned to upcoming bond issue of CJSC Druzhba Narodov Nova
Today independent rating agency Credit-Rating announced the granting of a long-term
uaAA credit rating to the scheduled registered interest-bearing bond
issue (B series) by CJSC Druzhba Narodov Nova (AR Crimea, Krasnogvardeyskiy district) in
the amount of UAH 200 million with a circulation period of 2 years. The company’s main
activity is production of broiler chicken meat.
Factors supporting the credit rating’s level:
- CJSC Druzhba Narodov Nova is the largest industrial producer of poultry meat in Ukraine and has a large working experience in poultry raising;
- The Issuer is a member of vertically integrated holding Mironovskiy Khleboprodukt that has considerable experience in agricultural production, which secures the Issuer’s supply with raw material and allows optimizing the promotion and selling of products in the market;
- leading positions of Mironovskiy Khleboprodukt Group poultry plants in the rapid-growing Ukrainian poultry meat market, in particular in 2005 products of Nasha Ryaba TM took about 45% in the chicken meat production market;
- growing financial and economic performance of the Issuer and Mironovskiy Khleboprodukt group in 2003-2005: the Issuer’s assets grew 3.5 times to UAH 817.9 million, the group’s assets almost tripled – to UAH 1.9 billion, mainly through increase of the Issuer and group’s owned capital, their financial independence coefficients in 2005 were 0.8 and 0.7 respectively; the Issuer’s sales volumes grew over the period three times to UAH 495.6 million, the net income – by 5.5 times – to UAH 313.5 million, the same indices of the group in 2005 were UAH 1.4 billion and UAH 646.7 million respectively;
- the Issuer’s high efficiency rates: over the past 5 years the capability utilization index, chicken hatchability and poultry population improvement indices constantly grow, which allows the company to regularly improve the operation effectiveness that was 128.1% in 2005;
- the bond issue in the amount of UAH 200 million is provided with guaranty from the chief group company – OJSC Mironovskiy Khleboprodukt and is equal to 15% of the owned capital and 31% of net income of the analyzed company group in 2005;
- experience in bond issuance in the amount of UAH 25 million and the successful redemption.
Factors restricting the credit rating’s level:
- operation risks of CJSC Druzhba Narodov Nova are inseparable from risks of the group, in particular the redistribution of cash flows inside the group without consideration of the Issuer’s interests (the group has the record of applying transfer prices).
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
