IBI-Rating has affirmed the credit ratings of «RUSH» LLC bonds

IBI-Rating informs on affirming of the long-term credit rating of interest-bearing bonds of G, H series unsecured interest-bearing bonds of «RUSH» LLC at uaA+ grade with outlook «evolving». The credit rating has been kept on the CreditWatch List due to the martial law imposed in connection with the invasion of russian troops into Ukraine, which has a significant negative impact on the country's economic condition and financial stability.

The purpose of G, H series bond issue (for the total amount of UAH 500 million) is defined as: capital and current repairs of new and existing stores, purchase of trade equipment, purchase of machinery, purchase of intangible assets, purchase of security equipment, recruitment and training of personnel. Bond maturity: February-March 2027.

«RUSH» LLC has been operating in the market since 2002 and represents «Line of the EVA shops», which meets the needs of Ukrainian population in the purchase of cosmetics, perfumes, personal care products, household chemicals, baby care products, jewelry, accessories, etc. «RUSH» LLC holds leading positions in the Ukrainian market of «drogerie» in terms of retail turnover, total retail space and number of stores despite the deterioration of operating conditions during martial law. As of the beginning of July 2023, the company's retail network included 1 023 stores in the regional centers of Ukraine and large cities.

The presence of a developed retail network helps to maintain the positive financial result of «RUSH» LLC. The net income of «RUSH» LLC in the first half of 2023 amounted to UAH 9.2 billion, which is 29.3% more than in the same period last year. The result of the first half of 2023 was a net profit of UAH 945.4 million, which is 4 times more than in the first six months of 2022. Accordingly, the Issuer's retained earnings as of the beginning of July 2023 amounted to UAH 4.8 billion. Taking into account the financial results of the Institution for the first half of 2023 and a significant amount of highly liquid assets, the level of debt burden of «RUSH» LLC is kept at a low level.

The affirmed credit rating grade of «RUSH» LLC bonds is due to the Issuer's leading position in «drogerie» segment, improved performance indicators, the company's developed sales network, high capitalization, low debt burden, as well as the availability of additional resources in the form of unused credit lines. At the same time, Rating agency takes into account the sensitivity to operational and other risks due to the ongoing military operations in Ukraine as a result of russian aggression.

In order to conduct the analytical research the materials provided by «RUSH» LLC have been used, including: annual financial statements for 2020-2022 and 6 months of 2023, background information on the activities of Issuer, information on the issue of bonds, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

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