OREANDA-NEWS.  On 30 January 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine assigned a long-term credit rating of uaBB to UAH50m 3-year registered coupon bonds (A series) issued by Chernihiv-based Soyuz-Lider Private Venture (`Issuer` or `company`). The company`s primary activity is retail trade of consumer and food products. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 9M2007 as well as other inside information furnished by the company.

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.

Factors maintaining the credit rating
The Issuer is engaged with legally informal Soyuz group of companies, which is the biggest retailer in Chernihiv oblast, operating via network of outlets under Soyuz and Kvartal brands; the Issuer is also represented in Zhytomir and Kiev Oblast.
Growth in Issuer`s goods turnover over 2006 and 9M2007 with such trend to be retained.
The number of the group`s outlets grew 4.3x to 52 of 12.9K sq.m. (with 35 of them owned).

Factors constraining the credit rating
Issuer`s high dependency upon Soyuz group of companies, which risks are common with those of the Issuer.
Issuer`s increased debt burden to UAH125.4m (including the UAH50m bond issue), which exceeds 41.8x Issuer`s equity of UAH3m as of Oct. 1, 2007; the group`s debt burden increased to UAH227.5m, which exceeds 10.6x the Issuer`s equity of UAH21.5m.
The major part of Issuer`s fixed assets (71 per cent of the balance value as of Oct. 1, 2007) is liened under bank loans.
The group`s ambitious expansion plans in hotly competitive environment.