OREANDA-NEWS. March 16, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaB from uaBB the long-term credit rating assigned to registered coupon bonds (series A) issued by Kiev-based BMB Compound LLC (‘issuer’ or ‘company’) for the amount of UAH12.5m. The outlook on the rating is stable. The company’s principal activity is producing of confectionery and chocolate glazes for bakery, confection and dairy. In the course of analysis Credit-Rating considered company’s financial statements for 1H2009 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.

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 leading positions in Ukraine’s sector of confectionery and chocolate glazes.

Factors constraining the credit rating

Increasing issuer’s debt burden prompted by depreciation of the national currency, and constant issuer’s breaches in meeting its obligations on series A bonds.

A considerable part of issuer’s property is pledged as security for bank loans.

Concentration of issuer’s sales portfolio by a single type of standardized products (chocolate glaze) and by major customers.