OREANDA-NEWS. On 15 January 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBB to Dnepropetrovsk-based RUSH LLC (`company`). The company`s principal activity is perfume and cosmetics retailing. In the course of analysis Credit-Rating considered company`s financial statements for 2006-2007 and 9M2008 and 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

Company`s strong standing in the regional sector of perfume and cosmetics, in fact the company operates EVA chain, which number of units increased to 136 during 3Q2008.

The company`s key figures grew in the previous periods, specifically the company`s net earnings increased to UAH401.9m; the company`s net earnings advanced by 46.3% over 9M2008 as compared to the similar year-earlier period, with the EBITDA grown by 57%.

Factors constraining the credit rating

The company`s debt burden: the ratio of company`s net debt to the EBITDA was recorded at 6.0 as of Sep. 30, 2008.

Opacity with regard to probability of refinancing the company`s obligations under adverse environment in the financial market and high specific gravity of short-term debt obligations in the overall volume of company`s debts.

Company`s aggressive expansion strategy.

Hot competition in the sector and its further anticipated growth.