OREANDA-NEWS. On 12 February 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term counterparty credit rating of uaB+ (uaB plus) to Chernihiv-based PROVIANT LLC (company). The companys principal activity is retailing foodstuffs, beverages, tobacco products, and different types of wholesale trade. In the course of analysis Credit-Rating considered companys financial statements and its other inside information.

An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely 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

Strong positions of PROVIANT group of companies (which is headed by the company) in the segment of condensed milk, which is sold under ICHNYA trade mark.

Factors constraining the credit rating

Companys debt burden (as of Sep. 30, 2008 the ratio of net debt to EBITDA calculated for the past 12 months was recorded at 7.1), with a significant share of company's assets pledged as security for bank loans.

The companys indicators of profitability and working capital are weighed down due to expansion of large retail chains in the sector.

Absence of audited consolidated financial statements.