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04.04.2007
Bond issue by «Tchernomorets-Commerce» 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 the issue of registered coupon bonds (A series) by Odessa-based "Tchernomorets-Commerce" LLC ("the Issuer" or "the company") for the amount of UAH 4m with the 5-year original maturity. The main company`s activity is restaurant business and retail trade. Today the company constructs a restaurant in the city of Odessa. In the course of analysis the "Credit-Rating" agency used Issuer`s financial statements for 2001-2005 and 9M2006 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.
Factors maintaining the credit rating
- Issuer`s underwriter on the planned bond issue is, according to the agreement
from
5th Sep. 2006, the "Imexbank" Joint-Stock Commercial Bank, rated uaA on 10 Oct. 2006 - The Issuer is incorporated with the "Primorye" group of companies, which, if needed, may underpin the Issuer.
- The Issuer is involved in restaurant business in Odessa, where such an activity is perspective.
Factors constraining the credit rating
- Risks, which may incur under the possible funds` redistribution within the group of companies.
- The planned issue size (UAH 4m) 33x exceeds the Issuer`s equity (UAH 0.13m)
- Negative net working capital over the past 4 years, which makes the company dependant upon attracted funds. The Issuer`s consolidated liabilities as of 30 Sep.2006 are equal to its asset balance.
- Low Issuer`s information transparency.
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
