OREANDA-NEWS. On 5 February 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine  assigned a long-term credit rating of uaBBB to UAH50m 3-year registered coupon bonds (A series) to be issued by Kiev-based MD Holding LLC (`Issuer` or `company`). The company`s principal activity is wholesale trade of metal roll on the Ukrainian market and its export to CIS countries. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2006 and 9M2007 as well as other inside information furnished by the company.

An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.

Factors maintaining the credit rating
Issuer`s strategic partnership with Zaporizhstal Integrated Iron & Steel Works JSC, which is ranked the 4 th by volume of steel production in Ukraine; the Issuer is one of the biggest national metal traders.
Issuer`s significant expansion since its establishment in 2006, in fact the 9M2007 net sales made up UAH2.8bn; the EBITDA UAH101.9m with the net profit amounting to UAH66.3m.
High rates of national consumption of metal products with such trend expected to be further retained.

Factors constraining the credit rating
Issuer`s dependency upon Zaporizhstal Integrated Iron & Steel Works JSC, with the specific gravity of its products in Issuer`s sales making up a. 60 per cent in 9M2007 (in terms of money).
The Issuer`s debt burden, loaded with the UAH50 bond issue, will reach UAH122m, which exceeds 7.8x the Issuer`s equity of UAH15.6m as of Oct. 1, 2007.