Fitch rates Kernel B

Fitch Ratings said it assigned Kernel Holding SA long-term foreign- and local-currency issuer default ratings of B and B+, respectively, and a national long-term rating of AA+(ukr).

The outlook is stable.

The long-term issuer default rating reflects the vertically integrated nature of the company, its conservative approach to trading market risk, as well as its track record of maintaining stable operating profit margins of 16% to 17% in the past three financial years despite swings in market prices over the period fiscal 2007 to 2009, according to the agency.

Leadership market positions, a well-balanced position between cash flow and debt by currency, as well as adequate liquidity support the rating, the agency noted.

Ratings also consider the high reliance of Kernel's sales on a limited number of large customers, high seasonal peaks for working capital and the company's growth ambitions, the agency said.

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