OREANDA-NEWS. On 19 June 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaA- (uaA minus) from uaA the long-term credit ratings assigned to coupon bonds (series A, B) issued by Cherkassy Oblast-based Agroekoprodukt CJSC for the amount of UAH50m, and the long-term credit rating assigned to coupon bonds (series B) issued by Cherkassy Oblast-based Shevchenko LLC for the amount of UAH30m. The outlook on both ratings is negative.  

In the course of the ratings` revision procedure Credit-Rating considered both of the companies within VERES group, though the analysis of certain indicators was hindered by absence of audited consolidated financial statements.

An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is 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).

Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.

Factors maintaining the credit rating

Strong standing in the market of VERES group, which incorporates the companies.

Vertical integration and diversification of the group`s activities.

Factors constraining the credit rating

The group`s detrimental performance recorded in 2008, coupled with poor liquidity under adverse environment in the financial market and opacity with regard to refinancing the obligations.

Absence of group`s audited consolidated financial statements.

The group`s companies are vulnerable to changes in state agricultural policy, and to seasonal factors and weather impacts.