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22.01.2007
Upcoming bond issue by «Image Holding», the affiliate of the «Image Holding ApS» JSC assigned uaA credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaA long-term credit rating to upcoming issue of registered coupon collateral bonds (A series) by Zaporizhya region-based "Image Holding", affiliate of the "Image Holding ApS" JSC ("the Issuer" or "the company") for the amount of UAH 50m with the 3-year original maturity. The main company`s activity is production of alcohol beverages. In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 2003-2005 and for 9 months of 2006 as well as other inside information furnished by the company.
The uaA issue rating reflects strong capacity of the obligor to pay the issue given, it may, though, be more vulnerable to adverse changes in economic, financial and business conditions than debt liabilities rated uaAA and uaAAA.
Factors supporting the credit rating
- According to 1H 2006 totals the Issuer took 1 st place by sales of alcohol beverages and takes currently over 20% of domestic market, which is fostered by sound marketing and sales company`s policy.
- Growth in Issuer`s performance indicators over 3 past years, specifically the company`s assets grew almost 7x (up to UAH 693.2m), the own capital grew from UAH 73.1m to UAH 292.9m, net sales of 9 months 2006 grew to UAH 1,143.9m compared to UAH 450.5m in 2005.
- The company`s net profit (UAH 96.8m) for 9 months 2006 almost 2x exceeds the issue size.
Factors constraining the credit rating
- High competitive level on domestic vodka market and stabilizing in consumption volume (35-40m decalitres annually).
- Issuer`s fulfillment of planned sales is contingent on increase of expansion to foreign markets which requires large expenses for products promotion.
- High company`s dependency on state regulations in Ukrainian alcohol market.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found at 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
