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31.08.2006
uaA+ credit rating assigned to upcoming bond issue of the Dnepropetrovsk research factory "Energoautomatika", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaA+ credit rating to the registered interest-bearing bond issue (A series) by Dnipropetrovsk Research Plant Energoavtomatika Ltd (Dniptopetrovsk) in the amount of UAH 3 million with a circulation period of 3 years. The companys main activity is production of automobile batteries.
Factors supporting the credit ratings level:
- DRP Energoavtomatika Ltd has more than 10 years of working experience in battery production and takes up about 15% of Ukrainian market;
- The Issuers equity is 43 times larger than the scheduled issue;
- over the past 5 years the companys performance in liquidity and financial stability is at the high level, its operation is profitable (net income volume in 2005 was UAH 11 976 thousand);
- low level of current and expected debt load of Issuer: the share of bank credits in total balance as of 01.04.2006 was 9.6%, EBITDA index in 2005 was 12 times higher than financial expenditures of the period, and 44 times higher than annual income payments on the scheduled bond issue;
- Issuer is a member of specialized company group which provides the company with optimal system of supply of primary products and raw materials and sale of products;
- high growth rates of Ukrainian automobile fleet in the following years are to promote further increase of demand for batteries.
Factors restricting the credit ratings level:
- Issuers dependence on prices on lead and lead alloys which kept growing at high rates recently;
- dependency of DRP Energoavtomatika Ltd on both exporter and external economic situation;
- Issuers risks are interrelated with risks of his company group.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
