Financial news

Ratings review for 15.10.2007.

RA "Credit-Rating" assigned a credit rating "uaBB" to LLC "EUROGASBANK"

The rating was assigned to the Bank 21.08.07. In the course of the analysis the rating agency used financial accounting of the Bank, for the first 6 months of its activity and also internal information provided by LLC "EUROGASBANK".

One should note that for the first time such rating is assigned to the Bank performing just for half a year its operative activity. "We are not going to stop at the achieved and already today do everything for next year to raise this rating to the level "investment", — noted Rostislav Pavlichenko, Chairman of the Board of LLC "EUROGASBANK".

National scale of credit ratings of the company "Credit-Rating" is specially designed to be used by borrowers and investors at Ukraine financial market. National scale is made without taking into account of sovereign risk which influence is the same for all Ukrainian borrowers and permits more precisely to differentiate them over the whole scale range when a first-class borrower can get the highest mark. The internal credit rating gives a possibility to estimate credit risks level in the terms of Ukrainian market without taking into account of influence of sovereign risk international aspects.

            RA "Credit-Rating" assigned credit rating "uaBB+" to the issue of bonds of LLC "Rovex" series "B"

Today the independent rating agency "Credit-Rating" announced about assigning of long-term credit rating "uaBB+" to the issue of registered interest bonds of series "B" LLC "Rovex" (Ternopil) at the amount of UAH 50 mln. for 3 years circulation term.

Main field of activity of the company is a retail and wholesale trade with provisions and non-foods and also alcoholic beverages and tobacco goods. In the course of analysis the rating agency used a complete financial accounting of LLC "Rovex" for 2003 — 2006 and I half of 2007 and also internal information provided by the issuer in the course of rating process.

Borrower or an individual debt instrument with "uaBB+" rating is characterized by solvency below sufficient, in comparison with other Ukrainian borrowers or debt instruments. High dependency of solvency level from influence of unfavorable commercial, financial and economic conditions. Marks "+" and "-" mean an intermediate rating level inside the main level.

Factors supporting credit rating level:

• LLC "Rovex" is a basic enterprise of group of the companies and one of the biggest operators of the market of wholesale trading with provisions and non-foods in Ternopil region. And also performs retail trading through supermarkets of the network "Trade world" which totally accounts 21 stores with total trading area 10,9 thous. sq. m.;
• growth of the main indexes of financial-economic activity of the issuer during 2003 — 2006 and I half of 2007:  assets of the company increased 4,7 times by UAH 97,8 mln., equity 11,2 times by UAH 16,8 mln., net income from realization during 2003-2006 increased 2,6 times by UAH 398,2 mln.; as of 01.07.2007 the volume of undistributed profit made up UAH 3,4 mln.;
• maintaining of growth prospects of retail commodity circulation in the terms of insufficient market saturation of retail and wholesale trading of Western region.

Factors, that limit credit rating level:

• increase of debt load with grace of bonds issue (UAH 50 mln.) and existent net debt (UAH 17,7 mln.) by UAH 67,7 mln., that 4 times exceeds volume of issuer equity as of 01.07.2007. Besides, issuer plans additionally to attract about UAH 200 mln. At the expense of designed financing;
• low activity indexes, namely of sales profitability and profitability of EBITDA which in accordance with the І half of a hear 2007 constituted 0,4% and 1,9% (in accordance with the results 2006 sales profitability and profitability of EBITDA constituted 0,1% and 1,5%, correspondingly);
• increasing contest at retail trading market of Ukraine in whole and Western region in particular.

Source: Information agency Сbonds