RA «Expert-Rating» confirms and temporarily suspends the credit rating of the planned bond issue of PJSC «STOMA»

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RA «Expert-Rating» confirms and temporarily suspends the credit rating of the planned bond issue of PJSC «STOMA»

31/12/2011

RA «Expert-Rating» confirms the credit rating of the planned bond issue of PJSC “STOMA” at the level uaA- according to the results of the 9 months of 2011. The credit rating of the planned bond issue is suspended on 31.12.2011 at the issuer’s request due to the unfavorable bond market conditions.

When confirming a high level of credit rating, the Agency was based on the analysis results of the Company activity for the first 9 months of 2011.

Table 1

Activity results of PJSC «STOMA» for the 9 months of 2011

Indicators	9 months of 2011 01.10.2011	9 months of 2010 01.10.2010	Change	Growth rate, %
Fixed assets at net book value	24648	28798	-4150	-14,41%
Stocks	19216	13568	5648	41,63%
Accounts receivables	44143	43238	905	2,09%
Accounts payables	7055	5049	2006	39,73%
*Accounts* *receivables/ Accounts* *payables* *ratio*	625,70%	856,37%	-230,67 p.p.	-
Shareholders’ equity	123069	128728	-5659	-4,40%
Liabilities	47710	26581	21129	79,49%
*Coefficient* of *autonomy* (*shareholders’ equity* / *liabilities*)	257,95%	484,29%	-226,33 p.p.	-
Long-term bank loans	0	0	0	-
Short-term bank loans	0	0	0	-
Total debt of the company to investors on bonds	0	0	0	-
Revenue from sales	113009	115613	-2604	-2,25%
Net income	83249	81204	2045	2,52%
Net profit (loss)	7929	13668	-5739	-41,99%
ROE	6,44%	10,62%	-4,18 p.p.	-
ROS	7,02%	11,82%	-4,81 p.p.	-
EBIT	19851	24371	-4520	-18,55%
EBITDA	25087	27902	-2815	-10,09%
*EBITDA/ Liabilities ratio***	52,58%	104,97%	-52,39 p.p.	-

Source: Data of PJSC «STOMA», calculations by RA «Expert-Rating»

1. The issuer’s liabilities have grown by 79,5%, its shareholders’ equity has decreased by 4,4%. At the same time the coefficient of autonomy has decreased from 484,29% to 257,95%. The Agency positively appreciates this trend, because shareholders’ equity has exceeded liabilities in 2,6 times despite the issuer has reduced the level of capitalization. Thus, the decrease of the Company’s autonomy coefficient hasn’t affected its solvency.

2. Despite a successful prospectus registration of the bond issue as of 01.10.2011 PJSC “STOMA” didn’t begin the bond placement. Besides, the company didn’t use bank loans, because it had enough of their own resources. According to the Agency, in the Q3 of 2011 the issuer faced to the change of market conditions in the form of the rise in interest rates, which made the placement economic unreasonable. The resource potential of the Company was directed to the increase in stocks, which amount grew by 41,63% for the period from 01.10.2010 to 01.10.2011.

3. The level of the issuer’s business activity may be considered as relatively stable. Revenue has declined only by 2,25% for the 9 months of 2011 in comparison with the same period of 2010 and net income has grown by 2,25%. Despite the reduction in profit by 42% for the 9 months of 2011, the issuer’s activity has remained profitable. Net profit of the Company has constituted UAH 7,929 mln. for the 9 months of 2011.

According to the results of the 9 months the issuer hasn’t conducted the placement of bonds by postponing this process for a more favorable period. The rating of the planned bond issue has been suspended at the issuer’s request. The rating will be renewed in future at the issuer’s request.

Analytical department of RA «Expert-Rating»

Confirmation of PJSC “STOMA” (english version) - 31.12.2011