OREANDA-NEWS. November 20, 2009. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it affirmed at uaBBB the long-term credit rating assigned to registered coupon bonds (series D) issued by Lviv-based Concern Khlibprom OJSC (‘issuer’ or ‘company’). The amount of the issue is UAH50m, with 5 ?-year original maturity. The outlook on the rating has been changed to stable from negative. To revise the rating Credit-Rating considered issuer’s consolidated financial statements for 6M2009 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.

Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.

Factors maintaining the credit rating

Issuer’s strong market standing in the sector of bakery.

Company’s vertical integration.

Diversification of issuer’s production basis, which is represented with 15 bakery plants and 3 flour mill plants located in 5 Ukraine’s oblasts.

Factors constraining the credit rating

Issuer’s high debt burden and risk of its further rising driven by depreciation of the national currency.

A considerable specific gravity of standardized produce in the company’s product mix, with the former being subject to price regulation by the state.