IBI-Rating has affirmed the credit rating of bonds of meat processing plant «Globino» LLC

Rating agency IBI-Rating informs on affirming of the long-term credit rating of B series interest-bearing bonds of meat processing plant «Globino» LLC at uaA grade, with a «stable» outlook.

Meat processing plant «Globino» LLC forms a part of the vertically integrated group of companies «Globino», which holds leading positions in the domestic market of meat and sausage products. The Issuer has the necessary production facilities, a wide range of products, a significant level of its own raw materials (products of its subsidiary company), as well as a well-established sales system. The company is focused on the domestic market, selling a substantial volume of products through national retail networks. The Agency notes competition in the domestic market of meat and sausage products in the conditions of low purchasing power of the population, as well as the difficult economic situation in the country, which negatively affects the growth potential and solvency of economic entities.

Net income of meat processing plant «Globino» LLC for 9 months 2017, compared to the same period of the previous year, increased by 14% up to UAH 1,313.4 m. At the same time, the activity remained unprofitable - net loss amounted to USD 60.8 m.

The decision on the open public placement of registered interest-bearing unsecured bonds of В series for the amount of UAH 100 m was adopted by the general meeting of participants of meat processing plant «Globino» LLC in September 2012. Actually, bonds worth of UAH 15 m were placed. During the period under review, liabilities on bonds decreased to the amount of UAH 2.3 m, as by the end of September 2017. The volume of liabilities under foreign currency loans from international financial organizations decreased to USD 16.4 m, or the equivalent of UAH 433.9 m. as of 09.30.2017. A significant part of loans in foreign currency increases the issuer's sensitivity to currency risk. The decrease in financial results has led to an increase in debt load, despite a decrease in the amount of debt.

Materials used for conducting the analytical research were obtained from meat processing plant «Globino» LLC, including: financial statements for 2014-2016 and 9 months of 2017, reference information on the activities of meat processing plant «Globino» LLC, information on issues of bonds, other necessary internal information, expectations of the IBI-Rating Rating Agency as well as information from open sources, which the Rating Agency considers to be reliable.

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