OREANDA-NEWS. On 10 April 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaA to registered coupon bonds (series A, B) to be issued by Cherkassy Oblast-based Agroekoprodukt CJSC (`Issuer` or `company`). The amount of the issue is UAH50m, with 3-year original maturity. The company`s principal activity is production and sale of canned products. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2007 as well as its other inside information.

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 incorporated with the VERES group of companies, which is one of Ukraine`s biggest producers of canned vegetables and fruits, selling these products under a well-known brand; the Issuer`s surety to the bond issue is Ukrshampinyon CJSC, which is a part of the VERES group.
The Issuer enjoys availability of own raw materials base.
Issuer`s key indicators have been growing over 2004-2007, specifically the net sales advanced 5x to UAH350.9m from UAH70.1m and EBITDA grew 4.6x to UAH27.8m from UAH6m.

Factors constraining the credit rating
The Issuer is vulnerable to the risks of the entire VERES group.
High Issuer`s debt burden (its liabilities exceed 3.4x the equity as of Dec. 31, 2007) with such trend expected to be further retained.
Seasonality of Issuer`s activities, which are dependant upon crop capacity and weather conditions, as well as Issuer`s vulnerability to State support of the agricultural sector and to competition in the industry.