IBI-Rating has affirmed the credit rating of A-E series bonds of «Pharmaceutical company «Zdorovie» Ltd at uaA grade

IBI-Rating informs on affirming of the long-term credit rating of A-E series interest-bearing bonds of «Pharmaceutical company «Zdorovie» Ltd. at uaA grade with a «stable» outlook.

«Pharmaceutical company «Zdorovie» Ltd. ranks among the largest domestic producers of pharmaceutical products. Production and distribution of pharmaceutical drugs depends on the government regulation, primarily on licensing of activities.

During 9 months of 2016, the Issuer’s net revenue increased by 16.5%, as compared with the similar period of the previous year, amounting to UAH 1 045.3 mln. The export revenue generates a significant share of the net revenue, which diversifies the Issuer’s distribution markets and reduces sensitivity to the exchange rate fluctuations. Net income amounted to UAH 40.5 mln. versus UAH 100.9 mln. for 9 months of 2015. The decrease in profitability was the result of an increase in the cost of sales, as well as an increase in financial expenses as a result of the growth of debt liabilities amount. Placement of interest-bearing bonds, which are the object of rating, as well as taking out a loan, led to the growth of debt burden, which, given the fact that liabilities are long-term, is estimated as acceptable.

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