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21.03.2007
Credit rating assigned to «Pavlogradugol» OJSC upgraded from uaB- to uaB
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today upgraded the long-term credit rating assigned to Pavlograd-based "Pavlogradugol" OJSC ("the company") from uaB- (uaB minus) to uaB. The Outlook on the rating is Positive. To revise the rating the agency used company`s financial statements for 2006, as well as other inside information furnished by the company.
The agency has also announced the upgrade of the long-term credit rating assigned to issue of registered coupon bonds for the amount of UAH 134.7m with the 7-year original maturity from uaB- (uaB minus) to uaB .
The uaB issuer rating reflects higher default possibility than of the uaBB rating, though in this case 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.
Positive Outlook exhibits a possibility of the rating`s upgrade in the course of the year on condition that the positive tendencies are retained and the current risks are reduced.
In the course of the company`s rating upgrade procedure the agency took into account 39.2% growth in net sales income (up to UAH 2.2bn), 3.2x growth in EBITDA (up to UAH 303.9m). The PBT in 2006 amounted to UAH 63.9m (though being negative in 2005).
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
