OREANDA-NEWS. On 26 March 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB to Zaporizhya-based Zaporozhye Ferroalloys Plant OJSC (`Issuer` or `company`). The company`s principal activity is production of ferroalloys. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2002-2006 and 9M2007 as well as 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.

Factors maintaining the credit rating
The Issuer is Ukraine`s second largest and one of the biggest Europe`s ferroalloys producers.
The company enjoys stable ties with suppliers of its major raw material, namely manganese ore (a. 70 percent of Issuer`s expenses).
Diversification of markets, in fact about 50 percent of Issuer`s products are sold overseas.

Factors constraining the credit rating
Issuer`s volatile performance, specifically the company has faced losses in 2004-2005.
Issuer`s performance is dependant upon electricity tariffs: the specific gravity of expenses on electricity in the ferroalloy`s net cost makes up from 30 to 50 percent, and a. 30 percent in that of ferrosilicomanganese.
Issuer`s performance is dependant upon environment in the market of ferrous metals, which has a volatile demand and prices.