IBI-Rating has affirmed the credit rating of B series bonds of «ENERGOPOSTAVKA» LLC at uaBBB- grade

IBI-Rating informs on affirming of the credit rating of В series registered interest-bearing bonds of «ENERGOPOSTAVKA» LLC at uaВВВ- grade, with a «stable» outlook.

The affirmation of the credit rating of the debt instrument is due to the presence of the guarantor «Kirovohradoblenergo» PJSC (credit rating uaBBB), which is a natural monopoly on the electricity distribution in the territory of Kirovohrad oblast. At the same time, the concentration of the issuer's investments in certain types of securities is high what exposing to high risks in the event of failure by one of the counterparties to fulfill its obligations. In addition, the issuer operates in the financial market, which is characterized by increased sensitivity to the impact of crisis phenomena, in particular, given the current unstable political and economic situation in the country.

According to the results of full year 2018 «ENERGOPOSTAVKA» LLC worked with insignificant profit in the amount of UAH 58.4 thousand. In turn, the net financial result of the first quarter of 2019 was negative: UAH (-) 33.9 thousand. The financial result of the Company is characterized by significant fluctuations due to the specifics of the issuer's activity - the main components of income and expenses are revenue and expenses related to securities purchase and sale operations.

The decision on the public offering of B series bonds was made by the General Meeting of the participants of «ENERGOPOSTAVKA» LLC (Minutes of the participants meeting dated 14.03.2016). The purpose of the issue is to invest in liquid securities of enterprises in the electric power industry, metallurgy, the hotel industry, as well in enterprises that are providing financial services.

IBI-Rating does not currently see any factors that may lead to upgrading of the credit rating of the issuer’s bonds in the short term. Downgrading of the credit rating is possible in the event of deterioration of solvency (liquidity) of the issuer or the guarantor, increased concentration of the securities portfolio, as well as the deteriorating situation in the financial market and in the country’s economy as a whole.

In order to conduct the analytical research the materials provided by «ENERGOPOSTAVKA» LLC have been used, including: financial statements for 2016-2018 and 3 months of 2019, target performance indicators, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Financial Department
For additional information please contact:
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