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09.10.2006
The uaBB credit rating assigned to the planned bond issue of UEA "Truskavets-kurortservice"
The independent Credit Rating rating agency has today announced the assignment of the uaBB long term credit rating to the planned issue of registered discount bonds (A series) of the Union of Enterprises of the Truskavets-based Truskavets-kurortservice association for the amount of UAH 10 mln. with the circulation period of 3 years. The investment and construction is the main company's activity. The Credit Rating agency used the Issuer's financial reports for 2001-2005 and for the 1H 2006, and other inside information, furnished by the company.
Factors, supporting the credit rating level
- the Issuer's experience in implementation of works as the general contractor, as well as implementation of projects aimed at construction of commercial premises with the total floor area of 12.3 thousand sq.m.
- The growth of indices in the Issuer's financial and economic activity; the company's assets have increased 25x over the past 5 years, in fact up to UAH 39.6 mln, the equity capital increased 29x and made up a number of UAH 2.7 mln. as of 30th June 2006, the net sales volume increased 25x , in fact to UAH 6.3 mln. according to the 2005 totals, the gross company's profitability increased from 25% to 52%.
Factors, restricting the credit rating's level:
- The volume of the planned issue is 4x more than the Issuer's equity capital.
- The negative index of the Issuer's net circulating and of the net working capital which is (-) UAH 8.4 mln and (-) 15.4 mln. respectively (as of 30 June 2006), which makes the company dependent upon the borrowed funds.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale can be also found in the REUTERS and BLOOMBERG information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
