OREANDA-NEWS.  On 28 January 2008, Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBB to UAH50m 5-year registered coupon bonds (B series) by Kharkiv-based MKS LLC (`Issuer` or `company`). The company`s primary activity is trade of computer equipment and IT-products. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2002-2006 and 9M2007 as well as other inside information furnished by the company.

An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.

Factors constraining the credit rating

The Issuer is one of the leading national companies operating on the Ukraine`s computer market; it has a wide-spread network of 64 outlets of 25K sq.m. commercial premises.
Issuer`s key figures have grown over 2002-2006: asset balance 5.3x to UAH299.2m (UAH308.4m as of Sep. 30, 2007), net sales 2.8x to UAH578.9m (UAH549.9m for 9M2007).

Factors constraining the credit rating

Most part of Issuer`s tangible assets is liened under bank loans.
Issuer`s low profitability indicators over 2002-2005 (the sales profitability did not exceed 1 per cent) accompanied by company`s detrimental performance in 2006 (the net loss made up UAH11.5m).
Severe competition on the national computer market, which is expected to strengthen in future.