print
04.12.2006
The Outlook on credit rating assigned to «Lutsk Automobile Plant» OJSC changed to Positive
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced change from Stable to Positive in Outlook on the uaBBB long-term credit rating assigned to "Lutsk Automobile Plant" OJSC ("Luaz", "the Issuer" or "the company"). The agency has also changed Outlook from Stable to Positive on the uaBBB long-term credit rating assigned to the issue of the registered coupon bonds for the amount of UAH 130m with the 5-year original maturity. The main company`s activity is manufacturing of passenger cars, trucks and buses. To revise the credit rating, the agency used Issuer`s financial reports for 9 months of 2006 as well as other inside information furnished by the company.
The uaBBB issuer rating reflects ADEQUATE CAPACITY of an obligor to timely and in full pay the given debt liability in the Ukrainian financial market environment, there is, though, a higher vulnerability to the effect of adverse changes in business, financial and economic conditions as compared to the debt liabilities with higher ratings.
The Positive Outlook exhibits a possibility of a rating`s upgrade in the course of the year on condition that the positive tendencies are retained and the current risks are reduced.
In the course of the rating`s upgrade procedure and change in Outlook the following factors were taken into consideration: growth in Issuer`s authorized stock by UAH 648m (up to UAH 805.8m) as well as increase in output and sales (9 months of 2006 saw 32.2 thousand of vehicles manufactured, which exceeds the similar period of 2005 by 39%, with net revenues increased 2x (up to UAH 1,518.7m), with the net profit amounting to UAH 89.3m
It is significant that the increase in the Issuer`s authorized stock was expected and considered in the rating`s level. The additional share`s issue is in line with the company`s declared strategy, which also plans a significant raise in debt liabilities in 2007-2008. The agency supposes that if the tendencies of output and sales growth retained, the company`s credit rating may be upgraded in the course of the year.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may 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
