OREANDA-NEWS. On 16 April 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaA- (uaA minus) to registered coupon bonds (series A) to be issued by Dnepropetrovsk Oblast-based SENTRAVIS PRODUCTION UKRAINE CJSC (`Issuer` or `company`). The amount of the issue is UAH150m, with 3-year original maturity. The company`s principal activity is production of seamless pipes, made from corrosion-resisting steels. 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating
The Issuer is incorporated with legally formal SENTRAVIS holding (SENTRAVIS PRODUCTION UKRAINE CJSC is the biggest holding`s production unit), which is one of the world`s biggest producers of seamless pipes, made from corrosion-resisting (stainless) steels (enjoying about 5% share of the global market in 2006).

The Issuer`s volumes of pipe production grew in 2003-2007 by 42.3% to 16.5K metric tons; the company is planning to raise its annual output to 36.1K metric tons at the expense of investments in expansion and updating its production facilities.

The mid-term prospects for favorable environment in the sector are expected to be retained.

Factors constraining the credit rating

Issuer`s short track record.

Issuer`s debt burden is expected to increase due to injections of planned investments (in the amount of USD50m in 2008).

Issuer`s dependency upon a single supplier (about 80% of raw materials is supplied by Dneprospetsstal OJSC).