IBI-Rating, an independent authorized rating agency announces an upgrade in the long-term credit rating of interest bonds Series AY (total 50 mln. UAH) of the Issuer DTEK Pavlogradugol" from uaBBB with "positive" outlook to uaBBB + with "stable" outlook.

The upgrade of long-term credit rating of the debt instrument (RDI) is due to, first of all, improved economic results of PJSC DTEK Pavlogradugol: net income for 2012 exceeded $ 100 million against losses of the previous 3 years. This, in turn, had a positive effect on the Issuer’s performance indicators and decreased debt burden.

The ratio of PJSC DTEK Pavlogradugol’s net debt (obligations on bank loans and interest bonds, reduced by the cash balance) to EBITDA according to 2012 results was 0.7 against 2.5 in 2011. In addition to improved financial results from operations, decreased debt burden was facilitated by partial repayment of obligations on bonds and bank loans.

The rest of key factors pointed out by IBI-Rating remain the same. Ukraine’s coal mining industry is still characterized by high capital intensity and increased risk of accidents. PJSC DTEK Pavlogradugol retains strategic importance for the country's economy and takes a leading position in the Ukrainian coal industry. The issuer is included into and supported by the largest vertically integrated energy group in Ukraine, DTEK.

Factors maintaining the credit rating: improvement of financial results by simultaneous growth of performance indicators, increased liquidity, reduced debt burden. Factors constraining the credit rating of a debt instrument: significant decrease in financial performance and deterioration of performance indicators, non-financial liabilities, worsening overall economic situation in the country.

Analytical study used data from PJSC DTEK Pavlogradugol, including: annual financial statements for 2012, reference information on PJSC DTEK Pavlogradugol’s activities, bond options, other necessary inside information, expectations of IBI-Rating, as well as the data from public sources (www.ukrstat.gov.ua, www.mpe.kmu.gov.ua, www.stockmarket.gov.ua , www.dtek.com) considered reliable by the rating agency.