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06.09.2006
uaBB credit rating assigned to upcoming bond issue of "ALLO", Ltd
Today independent rating agency Credit-Rating announced the granting of a long-term uaBB credit rating to the registered interest-bearing bond issue (B, C series) by Allo Ltd(Dnipropetrovsk) in the amount of UAH 50 million with a circulation period of 3 years. The companys main activity is trade of cell phones, accessories, digital equipment and also services of access to mobile operators.
Factors supporting the credit rating's level:
- The Issuer has eight years of working experience in wholesale and retail market of cell phones and top-up cards, and also runs the largest Ukrainian specialized store network (the total number of trading outlets of Allo network was 305 as of 01.07.2006);
- growing economic performance of the Issuer in the recent years: in 2005 the net revenue increased 3 times compared to 2001 and amounted to UAH 291 874.9 thousand; as of 01.04.2006 the volume of assets was UAH 76 771.9 thousand, which is 9.8 times larger than total balance as of the end of 2001;
- growing efficiency of trading activity by Allo Ltd, in particular yield from one square meter of trade area increased 2.6 time in 2005 compared to 2001 and amounted to UAH 31.4 thousand a year.
Factors restricting the credit rating's level:
- the scheduled bond issue volume (UAH 50 million) is 14.4 times larger than the equity of Allo Ltd as of 01.04.2006;
- low coverage of financial expenditures with incomes: in the first quarter of this year EBITDA was only 1.5 times larger than accrued interest on debt obligations, which is 7.7% less than a quarterly income payment on the scheduled bond issue;
- constant need of additional financial resources due to the companys expanding activity;
- growing competition in Ukrainian retail market of mobile phones.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
