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09.02.2007
Bond issue by «International automotive holding «Atlant-M» assigned uaA- (uaA minus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaA- (uaA minus) long-term credit rating to the issue of registered coupon bonds (A, B series) by Kiev-based "International automotive holding "Atlant-M" ("the Issuer" or "the company") for the amount of UAH 100m with the 3-year original maturity. The Issuer is incorporated into "Atlant-M" holding, which is involved in car sales in Ukraine, Russia and Belarus. In the course of analysis "Credit-Rating" agency used Issuer`s financial statements for 2001-1H2006 as well as other inside information furnished by the company.
The uaA issue rating reflects strong capacity to pay the issue given, it may, though, be more vulnerable to adverse changes in economic, financial and business conditions than issues rated uaAA and uaAAA. The "+" and "-" modifiers denote rating`s relative status within major categories.
Factors supporting the credit rating
- The Issuer is incorporated into the "Atlant-M" international holding, which has a big experience on automotive markets of Russia, Ukraine and Belarus, and which is a general importer of Volkswagen in Ukraine.
- The Issuer is one of the leaders on domestic market of foreign-made cars, which has been rapidly growing over the past few years.
- Holding`s growing sales over the past few years, specifically 2005 saw 4.9K Volkswagens imported, which is 42.3% exceeds indicator of the previous year (3.6K vehicles in 1H 2006)
- The bond issue is guaranteed by "Autohaus Atlant-M" LLC, "Autohaus-Kiev" LLC, "Intercar Ukraine Ltd" LLC. The consolidated net revenue of guarantors and Issuer in 2005 amounted to UAH 538.2m (1H of 2006 saw UAH 533.6m), net profit amounted to UAH 24.1m (1H 2006 saw UAH 10.6m)
Factors constraining the credit rating
- The issue size (UAH 100m) exceeds Issuer`s and guarantors` consolidated own capital by UAH 40.96m as of 1 Jul. 2006.
- Risks incurred by aggressive Issuer`s development strategy, which may significantly increase the debt burden for the next few years.
- Almost all Issuer`s property is pawned by the banks` credits.
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
