OREANDA-NEWS. On 03 September 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaAA- (uaAA minus) to registered coupon bonds (series E) to be issued by Kiev-based Furshet CJSC (`issuer` or `company`). The amount of the issue is to be UAH200m, with 3-year original maturity. The company`s principal activity is retailing. In the course of analysis Credit-Rating considered the financial statements of Furshet CJSC for 2003-2007 and 1H2008, the consolidated financial statements of Furshet group for 2004-2007 and other inside information furnished by the issuer.

An obligor or a debt liability with uaAA credit rating is characterized with the VERY STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

The amount of Furshet group`s earnings has been rapidly growing over the past few years, specifically the group`s net consolidated income recorded in 2007 grew by 45% (to UAH3.5bn) with the EBITDA increased by 67% (to UAH256m).

The vigorous development of Furshet chain, which embraced 88 supermarkets in Ukraine and 6 in Moldova as of May 1, 2008.

The Furshet group`s leading market positions.

High growth rates of retail segment over the past few years, with this trend expected to be further retained.

Factors constraining the credit rating

The Furshet group`s free cash flows have been negative over the past few years accompanied by further expected growth in debt burden weighed by significant amounts of planned investments.