Credit-Rating Assigns Garant Express Oil LLC`s Bond Issue
OREANDA-NEWS. On 05 March 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaCCC (provisional) to registered coupon bonds (series A) issued by Poltava-based Garant Express Oil LLC (`issuer` or `company`). The amount of the issue is UAH30m, with 5-year original maturity. In the course of analysis Credit-Rating considered issuer`s financial statements for 2006-2007 and 1H2008 and its other inside information.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.
Factors maintaining the credit rating
Growth of company`s key figures, in fact in 1H2008 its net earnings increased 25.4x to UAH84.7m, with the net profit recorded at UAH4.1m as compared to the similar year-earlier period, when the loss of UAH946.9K was recorded.
Factors constraining the credit rating
Issuer`s information opacity and intransparency.
The issuer`s activities are dependant upon environment in the oil sector, where significant price fluctuations may occur.
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