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03.11.2008
Global crisis negatively affects Ukraine`s metallurgy sector
Credit-Rating notes that the Ukrainian metallurgy sector deteriorates prompted by global financial crisis. This industry is quite vulnerable to the general climate in the economy, since the decrease in pace of economy growth first of all, leads to decline in demand on commodity markets. The most susceptible to price fluctuations are products with low added value, which is the primary product of the majority of Ukraine`s players in this segment. The price decline on the global market made the majority of Ukrainian iron and steel producers as well as companies operating in related sectors cut their output rates. In Credit-Rating`s view, a number of companies in the sector will encounter liquidity crunch under limited access to external funding.
Credit-Rating may start revision of credit ratings and/or rating outlooks assigned to the companies operating in the sector, considering their vulnerability to negative trends in the environment and risks of refinancing the liabilities under crunch in the financial market.
Credit-Rating agency has operated in the Ukrainian market since 2001 being committed to assignment of the national scale ratings. The agency has assigned 949 ratings, specifically to 729 Ukrainian companies (including 12 metallurgical companies and enterprises of the related branches), 163 financial institutions and 56 municipalities and their debts, and 1 corporate governance rating.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
