OREANDA-NEWS. On 26 January 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term counterparty credit rating of uaBB to Odessa-based Insakharprom-K LLC (company). The outlook on the rating is negative. The companys principal activity is wholesale and retail trade with white sugar and other sugar beet derivatives. In the course of analysis Credit-Rating considered company's and Insakharprom-K group's financial statements for 9M2008 and their other inside information.

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.

Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.

Factors maintaining the credit rating

Insakharprom-K group, which incorporates the company, has the leading position in the regional sugar sector.

Factors constraining the credit rating

The company has insufficient raw material base.

Insakharprom-K groups detrimental performance recorded for 9M2008.

Groups significant debt burden coupled with the group's eroded liquidity under adverse environment in the financial market and opacity with regard to refinancing of its obligations.

Growing competition in sugar sector.

Companys seasonality of activities accompanied by dependency upon climate and weather conditions and vulnerability to state policy in agricultural sector.