Credit-Rating Assigned Rise of CJSC`s Upcoming Bond Issue uaBBB
OREANDA-NEWS. On 12 May 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB to registered coupon bonds (series A) to be issued by Kiev-based Rise CJSC (`issuer` or `company`). The amount of the issue is UAH100m, with 3-year original maturity. The company`s principal activity is wholesale trade with agricultural machinery and spares, crop protecting products, seeds, mineral fertilizers, and agricultural 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 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
The issuer is incorporated with legally informal Rise group of companies, which is one of Ukraine`s biggest distributors of agricultural machinery, seeds and crop protecting products.
The issuer operates own distribution network comprising of 47 branches located all over Ukraine.
The issuer enjoys efficient management system.
The demand for agricultural products has been constantly growing in both Ukraine and the world.
Factors constraining the credit rating
The issuer`s financial obligations exceed 3x its equity as of Dec. 31, 2007.
Issuer`s vulnerability to changes in state agricultural policy and seasonality of demand.
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