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09.01.2007
Upcoming bond issue by «RUSH» LLC assigned uaBB credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBB long-term credit rating to the upcoming issue of registered coupon bonds (of A series) by Dnepropetrovsk-based "RUSH" LLC ("the Issuer" or "the company") for the amount of UAH 20m with the 3-year original maturity. The main company`s activity is trade of perfume and cosmetics goods. In the course of analysis the "Credit-Rating" agency used Issuer`s financial reports for the period of 2003 9 months 2006 as well as other inside information furnished by the company.
Debt liabilities rated uaBB are the least affected by the risk of non-payment of the principal and interest within the 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.
Factors supporting the credit rating
- The company is one of the leaders on cosmetics and perfume market in Dnepropetrovsk region, in the cities of Donetsk and Zaporizhya. This market has been growing over the past few years and this tendency is expected to be retained.
- Growth in main indicators of company`s financial and economic activity, specifically the assets grew 11.9x over 2003 9 months of 2006 (up to UAH 90.6m), net income from sales grew 6.1x (up to UAH 174.6m).
- High rates of trade network development over the entire period of company`s operation, specifically 2006 saw increase in number of outlets from 40 to 83 as of 15 Dec. 2006
- Increase in authorized capital up to UAH 10m, which is paid in full as of 01 Dec. 2006.
Factors constraining the credit rating
- Issuer is planning to raise 3.7x net revenues from sales over 2007-2010, whereas the market growth is expected to rise by 40-60% over the period specified.
- High level of competitiveness on perfume and cosmetics market, and its expected rising.
- Company`s low liquidity and profitability over the past few years.
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
