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26.01.2007
Upcoming bond issue by «Scientific and Manufacturing Enterprise «Plastopolimer» LLC assigned uaB+ (uaB plus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaB+ (uaB plus) credit rating to the upcoming issue of registered zero-coupon (housing) bonds (of K-M series) by the Simferopol region-based "Scientific and Manufacturing Enterprise "Plastopolimer" LLC ("the Issuer" or "the company") for the amount of UAH 24m with the 1 1/2 -year original maturity. The main company`s activity is producing semi-manufactures and products from fluorocarbon polymer. Moreover, the company is involved in cargo transportation, servicing and fixing of vehicles, investment and construction, and in real estate renting. Today the company constructs a residential building in the city of Simferopil. In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 2001-2005 and 9 months 2006 as well as other inside information furnished by the company.
The uaB issue rating exhibits a higher default possibility than of the uaBB rating, though the obligor`s capacity is adequate to pay its obligations in the Ukrainian financial market environment. This debt liability is more affected by the adverse changes in business, financial and economic conditions than debt liabilities with higher ratings. That may negatively affect the obligor`s capacity and willingness to fully and timely pay interest and principal on obligations. The "+" and "-" modifiers denote rating`s relative status within major categories.
Factors constraining the credit rating
- The Issuer has experience of a customer and investor in investment and construction projects, specifically a recreational centre in Novyi Svet borough (Autonomous Republic of Crimea) of 2.98k sq.m. has been constructed by the company over its period of operation.
- The Issuer has different revenue sources (company gained ca.90% of its income from fluorocarbon polymer products selling), specifically the net revenue over 2001-2005 grew from UAH 3.87m to UAH 13.97m, the undistributed profit amounted to UAH 2.05m as of 30 Sep. 2006.
- The Issuer is a customer and investor of construction of 4 buildings in the Crimean cities of Simferopil, Yalta, Alushta and Sudak, where the real estate prices have been growing over the past few years.
Factors constraining the credit rating
- The Issuer does not have experience in bonds` redemption.
- The construction of the residential building in the city of Simferopil to be financed by the money raised from the bonds` placement is currently on the initial stage.
- Volatility in legislation and taxation on operations connected with construction and with attraction of funding.
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
