Credit rating assigned to bond issue of «Ukrainian aviation transport company» affirmed at uaBB
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today affirmed the uaBB long-term credit rating assigned to bond issue of Affiliated Company of Ministry of Defense of Ukraine "Ukrainian aviation transport company" ("the Issuer" or "the company") for the amount of UAH 75m with the 5-year original maturity. The credit rating was assigned on 22 December 2005. The main company`s activity is providing the aviation cargo and passenger transport services. To revise the rating, the "Credit-Rating" agency used Issuer`s financial reports for 3Q and overall for 9 months of 2006, as well as other inside information furnished by the company.
The debt liabilities rated uaBB are the least affected by the risk of non-payment of principal and/or interest within speculative grade. The obligor, however, may be impaired to timely and in full meet its commitments on the obligation in the Ukrainian financial market environment in the event of adverse changes in business, financial and economic conditions. However, the possibility of nonpayment is low in the near future.
In the course of the rating`s affirmation procedure the agency took into consideration the following factors: the company`s fleet amounts to 35 transport aircrafts, including 20 functioning planes and helicopters. The company is planning to acquire 10 military transport AN-70 planes. 3Q 2006 saw insignificant growth in company`s asset balance mainly at the expense of current assets and credit indebtedness, entailed by increasing shipping operations in the framework of international humanitarian and peace-keeping programs. According to totals of 9 months 2006 the company gained profit of UAH 768 thousand, which insignificantly improved the company`s financial state. At the same time the agency takes into account the fact that Issuer does not have experience in registered coupon bond issuances, and that the company`s means of production are state-owned which may be alienated only on Ministry of Defense and State Property Fund`s approval.
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