IBI-Rating has affirmed the credit rating of A series bonds of «Optima-Pharm Ltd» JV at uaBBB grade

IBI-Rating informs on affirming of the credit rating of A series registered interest-bearing unsecured bonds of «Optima-Pharm Ltd» JV at uaBBB grade, with a «stable» outlook.

«Optima-Pharm Ltd» JV
continues being dependent on the government regulation, as the activities of wholesale distribution of pharmaceutical drugs and their imports is subject to licensing. The well-developed network of its own pharmaceutical warehouses, as well as cooperation with Ukrainian and foreign manufacturers ensures a stable market position of the Issuer. Thus, in recent years «Optima-Pharm Ltd» JV ranks the second by volumes of supply of pharmaceutical drugs to pharmacy networks. At the same time, significant volume of import operations of pharmaceutical drugs as well as existing foreign currency denominated debt liabilities cause the Issuer’s sensitivity to foreign currency risk.

By results of 9 months of 2016, «Optima-Pharm Ltd» JV increased sales volumes of pharmaceutical drugs both in-kind and in monetary terms. The increase in net income as compared to the similar period of the previous year accounted for 25.3%, amounting to UAH 11 331.8 mln. Net profit for 9 months of 2016 amounted to UAH 119.9 mln., retained earnings grew to UAH 1 130 mln., as at 30.09.2016. Revaluation of foreign currency debt liabilities along with the simultaneous decrease in the volume of cash and EBITDA resulted in the increase of debt burden, but taking into account that most liabilities are long-term, the level of debt burden has remained acceptable.

In order to conduct the analytical research the materials provided by «Optima-Pharm Ltd» JV have been used, including: the annual financial statements for 2013-2015 and 9 months of 2016 , background information on activities of «Optima-Pharm Ltd» JV, information on the issue of A series bonds, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Corporate department
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