OREANDA-NEWS. July 26, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it assigned a long-term credit rating of uaBBB to Lviv-based Concern Khlebprom OJSC (‘company’). The outlook on the rating is stable. The company’s principal activity is production and sale of preserved products. In the course of analysis Credit-Rating considered company’s financial statements for 2005-2009 and 1Q2010 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.

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

Factors maintaining the credit rating

Company’s strong standing in bakery segment.

Company’s vertical integration.

Diversification of company’s production facilities represented by 15 baking plants and 3 mills located in five Ukraine’s oblasts.

Factors constraining the credit rating

Company’s debt burden and high specific gravity of foreign currencies in loans.

High portion of standardized products, the prices for which are subject to state regulation.