OREANDA-NEWS. On 16 May 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaA to registered coupon bonds (series D) to be issued by Image Holding DP (`issuer` or `company), which is a Subsidiary Company of Zaporizhzhia Oblast-based Image Holding ApS. The amount of the issue is UAH50m, with 4-year original maturity. The company`s principal activity is production of spirits beverages. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 as well as its other inside information.

An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions.

Factors maintaining the credit rating

The issuer is the leading company on the national spirits market the company has recorded reaching of a 25 per cent market share in 2007.
The issuer`s sales have grown over the past few years, specifically in 2007 the sales volume made up 9.2m decalitres (12% higher than of the previous period) and UAH2bn (17% growth).
Issuer`s modest debt burden, in fact the consolidated debt to EBITDA ratio accounted for 2.1x in 2007 with that of the equity to debt being 1.3x.

Factors constraining the credit rating
Hot competition in the national spirits market, where a.90% of issuer`s products are realized.
High sales concentration on a single brand: the specific gravity of `Khortytsa` trademark in issuer`s sales structure makes up over 80%.
High company`s dependency upon state regulatory policy over the Ukraine`s national spirits market.