OREANDA-NEWS. On 25 June 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it affirmed at uaBB- (uaBB minus) the long-term credit rating assigned to registered coupon bonds (series A) issued by Kramatorsk-based Energomashspetsstal OJSC (`issuer` or `company`). The amount of the issue is UAH350m, with 5-year original maturity. The outlook on the rating is stable. The company`s principal activity is production of electric steel, moldings, forging, and ingots. In the course of analysis Credit-Rating considered issuer`s financial statements for 2H2008 and full 2008 and its 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.

Factors maintaining the credit rating

Issuer`s strong standing in the domestic market.

The issuer`s net revenues from sales of primary produce rose by 64.3% to UAH865.3m over 2008, as compared to the similar indicator recorded in 2008.

Factors constraining the credit rating

Issuer`s significant debt burden, and high specific gravity of short-term obligations in the overall company`s debts by bank loans (with 17.2% or UAH137m to be repaid by end-2009).

A considerable portion of issuer`s property is pledged as security for bank loans.

Cyclicality and high capital intensity of the industry.