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29.06.2010
Credit-Rating Downgrades Drohobych Rock Bit Plant OJSC’s bonds to uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaB with stable outlook from uaBB the long-term credit rating assigned to registered coupon bonds (series B) issued by Lviv Oblast-based Drohobych Rock Bit Plant OJSC (‘issuer’ or ‘company’).The amount of the issue is UAH25m. The company’s principal activity is production of drilling equipment. To revise the rating Credit-Rating considered issuer’s financial statements for 2H2009 and full 2009 and its other inside information.
An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
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The issuer is associated with the group held by Russia-domiciled Volgaburmash OJSC, which associates all biggest producers of drilling equipment in CIS countries.
Factors constraining the credit rating
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Decreased demand for major types of products, plunged sales and operating profit in 2009, which prompted issuer’s failures in meeting its commitments on financial obligations.
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Issuer’s significant debt burden.
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A considerable portion of issuer’s property is pledged as security for bank loans.
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Company’s vulnerability to changes in prices for metal, to regulation of export activities and to fluctuations in currency exchange rates due to significant volumes of issuer’s exports.
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
