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IBI-Rating has affirmed the credit rating of A series bonds of «Ruthenia M» at uaBBB grade

16.06.2016
IBI-Rating informs on affirming of the long-term credit rating of interest-bearing A series bonds of «Ruthenia M» private agricultural production company at uaBBB grade, with a «positive» outlook.

Bonds of nominal value of UAH 50 mln. were issued to finance the purchase raw materials and supplies, as well as renewal of equipment and machinery. «Ruthenia M» private agricultural production company is a part of the vertically integrated agricultural holding «TAS AGRO». The Issuer is engaged in growing of agricultural crops: wheat, sunflower, maize, barley and soybeans. The area of arable land exceeds 3 thousand ha. The enterprise also owns two mechanized facilities for grain processing, a grain-drying complex, seed treatment machines and special machines for grain cleaning, granaries, garages, workshops and auxiliary premises, as well as agricultural machinery. Activity of «Ruthenia M» private agricultural production company, as well as that of other domestic agricultural enterprises, is highly sensitive to the impact of such factors as: natural and climatic conditions and government regulation of the industry. The seasonality of the Issuer’s activities, causing fluctuations in the working capital, should also be noted. IBI-Rating notes the information openness and transparency of «Ruthenia M» private agricultural production company.

By results of 2015, «Ruthenia M» private agricultural production company demonstrated high performance, i.e.– operating margin accounted for 64.3%, return on sales accounted for 50.6%. Net profit amounted to UAH 38.2 mln. By results of 2015, debt burden stayed at a low level: the ratio of net debt and EBITDA amounted to 0.9х. In 1Q 2016, the bonds were repurchased, therefore, at the end of March 2016, the Issuer had no debt burden.

A positive impact on the credit rating grade may have, as follows: increased financial results at simultaneous improving of performance indicators and maintaining a low level of debt burden. A negative impact on the credit rating grade may have, as follows: default on debt obligations, decreased financial results and performance indicators, a substantial increase in the level of debt burden, deterioration of the political and economic situation in the country.

In order to conduct the analytical research the materials provided by «Ruthenia M» private agricultural production company, have been used, including: annual financial statements for 2013-2015 and 3 months of 2016, background information on activities of «Ruthenia M» private agricultural production company, information on the issue of series A bonds, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Corporate department

For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua