Credit-Rating confirms the rating of Odesa at uaАА-, determines investment attractiveness at uaINV5 (the highest level) Credit-Rating confirms the rating of Odesa at uaАА-

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13.05.2010

Credit-Rating downgrades Agroekoprodukt CJSC bonds to uaBBB+

Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaBBB+ (uaBBB plus) from uaA- (uaA minus) the long-term credit rating assigned to coupon bonds (series A, B) issued by Cherkassy Oblast-based Agroekoprodukt CJSC (‘issuer’ or ‘company’). The amount of the issue is UAH50m. The outlook on the rating is stable. The company’s principal activity is production and sale of canned products. In the course of analysis Credit-Rating considered issuer’s financial statements for 2009 and its other inside information.

An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

The change in the rating outlook to positive is in response to positive shifts in fundamental indicators of the company’s core business.

Factors maintaining the credit rating

  • Strong market standing of VERES group of companies, which incorporates the issuer.
  • Vertical integration and diversification of the group’s activities.

Factors constraining the credit rating

  • Issuer’s loss-generating performance in the past 2 years.
  • Low liquidity of VERES group under adverse situation in the financial market.
  • Absence of group’s audited consolidated financial statements.
  • Vulnerability of the group’s companies to changes in state policy affecting agricultural sector, and to weather and seasonality factors.

Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.

For more information, please contact:
Information and analytic department
Sergey Rozumyak +38044490 25 50 
SRozumyak@credit-rating.com.ua 
Denis Rudenko
DRudenko@credit-rating.ua

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