IBI-Rating has affirmed the credit rating of A-F Series bonds of "Pharmaceutical company "Zdorovie" at uaA grade

IBI-Rating informs on the affirmation of the long term credit rating of A-F Series bonds of "Pharmaceutical company "Zdorovie" LLC at uaA grade with a «stable» outlook.

The affirmation of the credit rating of a debt instrument is due to the preservation of the key factors that the Agency noted earlier. "Pharmaceutical company "Zdorovie" LLC is one of the largest manufacturers of pharmaceutical products in Ukraine. At the same time, the production and sale of pharmaceutical drugs is dependent on the state regulation of the industry. Export revenues generate a significant share of the Issuer’s net income, which diversifies its markets and reduces sensitivity to fluctuations in exchange rates. The increased production capacity and sales volumes given increasing sales prices had a positive impact on financial results "Pharmaceutical company "Zdorovie" LLC. Thus, net income for 9 months in 2015 amounted to UAH 897, 338 thousand, which exceeded the result of the similar period of last year by 64.5%. Net profit increased by 20%, up to UAH 100, 945 thousand. Shareholders' equity accounted for 59% of liabilities at the end of September 2015, indicating a fairly high level of financial independence. Placement of interest-bearing bonds, which are subject of rating, led to growth of the debt burden, but its level is assessed as low.

At the moment, IBI-Rating does not see the factors that may lead to increasing of the credit rating in the short term. Lowering of the credit rating is possible in the event of non-fulfillment of debt obligations, significant growth of the debt burden, reduced financial results and performance indicators, introduction of protective barriers in the main foreign markets, deterioration of the political and economic situation in the country.

In order to carry out the analytical research the materials provided by "Pharmaceutical company "Zdorovie" LLC were used, including: financial statements for 2012-2014 and 9 months of 2015, background information on the activities of "Pharmaceutical company "Zdorovie" LLC, information on the issue of A-F series bonds, other necessary internal information as well as the information from the public sources, which the Rating agency considers reliable.

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