OREANDA-NEWS. On 11 February 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine assigned a long-term credit rating of uaBBB to UAH100m 3-year registered coupon bonds (C and D series) to be issued by Kiev-based MD Group LLC (`Issuer` or `company`). The company`s principal activity is wholesale and retail trade with metal products and wholesale trade with fireproof items. 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 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.

Factors maintaining the credit rating
Being one of the biggest Ukraine`s metal traders, the Issuer is incorporated with the legally informal group of companies (MD Kremenchug and Dnepropetrovsk LLC act as underwriters of the bond issue), which is an official representative of Zaporizhstal Integrated Iron & Steel Works JSC.
Growth in Issuer`s key figures over 2003-2006, namely the net sales advanced 2.8x to UAH365.4m (UAH417.6m in 9M2007), the EBITDA increased 2x to UAH35.1m (UAH46m in 9M2007).
High rates of national consumption of metal products with such trend expected to be further retained.

Factors constraining the credit rating
Issuer`s dependency upon Zaporizhstal Integrated Iron & Steel Works JSC, with the specific gravity of its products in Issuer`s sales making up over 50 per cent.
The Issuer`s debt burden weighed with UAH100m bond issue will reach UAH184.4m, which exceeds 7.5x the Issuer`s equity of UAH24.6m (as of Oct. 1, 2007), with the debt burden of the Issuer and its underwriters increasing to UAH231.4m, which exceeds 6.8x the consolidated equity of UAH34.2m.