OREANDA-NEWS. On 19 March 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB- (uaBBB minus) (provisional) to UAH25m 3-year registered coupon bonds (series A) to be issued by Kiev-based Balford Ukraine LLC (`Issuer` or `company`). The company`s principal activity is selling of chemical products. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2006 and 9M2007 as well as 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).

Factors maintaining the credit rating
The bond issue is underwritten by Estonia-domiciled Balford Chemicals company, which is a parent company of Balford Group; the Group`s consolidated income in January-September 2007 made up UAH391.6m, with its consolidated assets amounting to UAH106.6m as of Oct.1, 2007, and equity of UAH37.9m.
The demand for complex mineral fertilizers has been stably growing, accounting for a. 60 percent of overall Group`s sales, with such a trend expected to be further retained.

Factors constraining the credit rating
Group`s volatile performance, namely its negative financial effect recorded in 2006, with the net loss amounting to ?240.4K.
The Group`s chemical sector is dependant on 2 primary Group`s customers, which account for 20 percent of sales and 70 percent of disposal in 2007.
The Group`s performance in its fertilizers segment is dependant upon seasonality, market environment and state regulatory policy in agriculture.