OREANDA-NEWS. January 6, 2011. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it upgraded to uaBB plus  (uaBB plus) with stable outlook from uaBB- (uaBB minus) the long-term credit rating assigned to registered coupon bonds (series A) issued by Kramatorsk-based Energomashspetsstal OJSC (‘issuer’ or ‘company’). The amount of the issue is UAH350m. The company’s principal activity is production of electric furnace steel, castings, forgings, and cakes. In the course of analysis Credit-Rating considered issuer’s financial statements for full 1H2010 and its other inside information.

An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions. A plus " plus " and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

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

Factors maintaining the credit rating

Large portion of exports in the company’s sales structure, which allows for diversifying income sources.

Issuer’s rising net income from sales of its primary products in 1H2010 by 66% to UAH673.2m versus 1H2009.

Factors constraining the credit rating

Issuer’s debt burden.

A large portion of issuer’s property is pledged as security for bank loans.

Cyclicality and high capital capacity of the sector.