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01.11.2006
The forthcoming bond issue by the LLC "MTI" assigned uaA credit rating
The independent "Credit-Rating" agency has today announced the assignment of the uaA long-term credit rating to the forthcoming issue of the registered interest bonds (A series) by the Kiev-based LLC Joint Ukrainian-Cyprian Venture "MTI" for the amount of UAH 50 mln. with the 4-year maturity. The company is one of the biggest Ukrainian suppliers of computer, office and telecommunication equipment, and of consumer goods. During the analysis, the "Credit-Rating" agency used Issuer's 2001-2005 and 1H 2006 financial reports, as well as other inside information, furnished by the company.
The uaA issue rating reflects the Issuer's strong capacity to meet its commitments on the present obligation in the Ukrainian financial market environment, it may, though, be more vulnerable to the adverse changes in business, financial and economic conditions than debt liabilities rated uaAA and uaAAA.
Factors supporting the credit rating
- The LLC JV "MTI" is one of the leading footwear and accessories distributors of the global brands in Ukraine, which are sold via the all-Ukrainian network, accounting for 46 shops (with 25 of them operating under the "Intertop" brand)
- The Issuer's activity diversification due to distribution and servicing of computer devices; according to the LLC JV "MTI", the company's share on the national wholesale market of printers is 19%, of displays and computer components is 14%, of cell phones is 10%.
- The Issuer's dynamic growth for the overall period of its activity, in fact the net sales revenues over the past 5 years increased 3.5x (up to UAH 1,322.6 mln. according to the 2005 totals), the assets size grew 5x (up to UAH 376.3 mln. as of 30 Jun. 2006), the 1H 2006 net revenues size reached the 2005 notch and accounted for UAH 13.7 mln.
Factors constraining the credit rating
- Risks incurred by the Issuer's ambitious strategy
- Negative index of the net operating capital over the past 5 years, which may increase the company's dependency on borrowed funds.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale can be 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
