OREANDA-NEWS. On 19 February 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine assigned a long-term credit rating of uaA to UAH50m 3-year registered coupon bonds (C series) issued by Image Holding (`Issuer` or `company`), which is the subsidiary of Zaporizhya Oblast-based Image Holding ApS. The company`s principal activity is production of spirits beverages. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 9M2007 as well as other inside information furnished by the company.

An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions.

Factors maintaining the credit rating
The Issuer is the leading company on the national spirits market the company has recorded reaching of a 25 per cent market share in 2007.
The Issuer`s key figures have grown over the past few years, specifically the net sales proceeds were up 17 per cent to UAH702.5m in 9M2007 with the operating profit advanced 5.4x to UAH121.9m as compared to the year-earlier similar period.
The Issuer enjoys moderate debt burden, in fact the Issuer`s equity exceeds 1.3x its obligations on the bond issues (including the given one) and bank loans.

Factors constraining the credit rating
There is a hot competition on the domestic spirits market accompanied by stabilized consumption rates (a.40m decalitres p.a.)
The Issuer is anticipated to face high expenses associated with implementation of large-scale projects on overseas markets.
High company`s dependency upon state control over the national spirits market.