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26.02.2007
Upcoming bond issue by «AIS» corporation assigned uaCCC credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaCCC long-term credit rating to the upcoming issue of unregistered coupon bonds (C series) by Kharkiv region-based "AIS" corporation ("the Issuer") for the amount of UAH 150m with the 20-year original maturity. The Issuer is incorporated into the group of companies, which is involved into manufacturing and sale of vehicles. In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 2001-2005 and 9M2006 as well as other information furnished by the company.
The uaCCC issue rating reflects a default possibility, which may be faced on the obligation in the Ukrainian financial market environment. The timely and full payments on debt liabilities are substantially dependent upon favourable business, financial and economic conditions.
Factors maintaining the credit rating:
- The Issuer is incorporated into the group of companies, which is one of the leaders on domestic market of vehicles (17% of the market as of 2005 totals), which has been rapidly growing over the past few years, and such a tendency is expected to be retained.
Factors constraining the credit rating
- Issuer`s high dependency on attraction of other group`s companies` funds, which may influence Issuer`s capability in meeting commitments.
- The issue size 5x exceeds Issuer`s consolidated income for 2001-9M2006.
- Issuer`s negative equity as of 1 Oct. 2006 called forth by uncovered loss of UAH 2.2m
- Severe competition on domestic market of vehicles.
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
