Information for fruit and vegetables business in CIS
Independent rating agency decreased rating of Khleb Ukrainy
On December 21 independent rating agency "Credit Rating" announced its confirmation of long term credit rating "uaB", according to Ukrainian national scale, for the State Joint Stock Company "khleb Ukrainy" (Bread of Ukraine).
The forecast of the credit rating is defined as "stable".
The long-term credit rating "uaB" means larger probability of default in creditor's obligations than in the category "uaBB", though the present time the creditor retains its position to meet its financial obligations in the conditions of Ukrainian financial market. Such a creditor is more susceptible to unfavourable changes in commercial, financial and economical conditions than the creditors with higher ratings, which night weaken its ability and its intent to pay out the interest and the main sum of the debt within its financial liabilities completely and timely, a representative of the rating agency explained.
In the course of the analysis Credit-Rating was using the full financial reporting of Khleb Ukrainy over the 9 months of 2004 and also internal information, provided by the company.
In reviewing its financial rating the agency took into account the following factors:
- a 17.9 percent growth in the company's assets, resulting from a growth of current assets in the third quarter of 2004;
- improvement of the liquidity indices over the reporting period;
- a net loss in the amount of 23.491 million hryvnias over the nine months of 2004. Over the same period last year the company got a profit in the amount of 45.078 hryvnias.