OREANDA-NEWS  On 28 October Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaB+ (uaB plus) to registered coupon bonds (series A, B) to be issued by Kiev Oblast-based Manufaktura LLC (`issuer` or `company`). The amount of the issue is to be UAH30m, due Dec. 4, 2011. The company`s principal activity is wholesale and retail trade with textile goods. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 1H2008 and its other inside information.

An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

Issuer`s wide-spread outlet network, which comprises 11 branches, 3 offices and 1 representative office located in different Ukraine`s regions.

Growth in issuer`s sales volumes: the sales gains recorded for 2007 was in excess of 28% in comparison with that of 2006 and amounted to UAH134.4m.

Factors constraining the credit rating

Issuer`s increased debt burden to UAH53.5m (including the upcoming bond issue of UAH30m), which exceeds 8.7x the issuer`s EBITDA of UAH6.1m recorded for the financial year ended June 30, 2008.

Hot competition in issuer`s market sector.