OREANDA-NEWS  On 23 October Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB- (uaBBB minus) to registered coupon bonds (series C) to be issued by Sumy-based Sumykhimprom OJSC (`issuer` or `company`). The amount of the issue is UAH120m, with 5-year original maturity. The company`s principal activity is production of titanium dioxide, mineral fertilizers, colorants, fodder phosphates and coagulants. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 1H2008 and 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 issuer has strong standing in the market being one of the CIS`s biggest producers of titanium dioxide, mineral fertilizers and of other chemicals.

The demand for mineral fertilizers is expected to be maintained in mid-term perspective.

Factors constraining the credit rating

The issuer is anticipated to make significant investments, which is associated with need in updating issuer`s production facilities.

Low issuer`s profitability indicators (the company`s operating profitability has not exceeded 8% during the past 3 years).

High industry`s cyclicality which is prompted by fluctuations in prices for the produce and the raw materials coupled with hot competition in the market.