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25.12.2006
Credit rating assigned to “Khartsyzsk Pipe Plant” upgraded to uaAA- (uaAA minus)
Kiev (Credit-Rating) December 25, 2006. “Credit-Rating”, a
nationally-recognized credit rating agency in Ukraine has today upgraded the credit
rating assigned to “Khartsyzsk Pipe Plant” OJSC (“the company” or “the Issuer”) from
uaA+ (uaA plus) to uaAA- (uaAA minus). The company is
one of the biggest manufacturers of large diameter pipes in the CIS. In the course of
analysis the “Credit-Rating” agency used company’s financial reports for 9 months of
2006, as well as other inside information furnished by the Issuer.
The uaAA issuer rating reflects very strong capacity of the obligor to pay the debt liability given in the Ukrainian financial market environment and slightly differs from the obligations rated uaAAA. The “+” and “-“ modifiers denote rating’s relative status within major categories.
Factors considered during the rating’s upgrade procedure
- Growth in financial performance indicators according to 9 months of 2006 totals, as
compared to the similar period of the previous year, specifically the 2.2x growth in net
sales revenues (up to UAH 2.1bn), the 2.7x growth in net profit (up to UAH 291.2m)
due to direct raw materials purchase and to direct production sales.
- Increase in majority of financial and economic activity indicators over 9 months of
2006, specifically that of liquidity, financial strength and profitability.
- Expected for January 2007 setting in operation the new production line for single-weld large diameter pipes, cost USD 25m, which will allow the company to widen its abilities in compliance with the market requirements.
Factors constraining the credit rating
- Over 50% of company’s production is sold in the Russian Federation, which may incur
risks connected with trade restrictions from the side of that country
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may also 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
