IBI-Rating has affimed the credit rating of bonds of «AGROFIRMA «ORSHIVSKA» LLC

IBI-Rating informs on the affirmation of the long-term credit rating of interest A series bonds of «AGROFIRMA «ORSHIVSKA» LLC at uaBBB grade with a «stable» outlook. The bonds of par value amounting to UAH 100 mln. were issued to finance the purchase of crop protection agents, mineral fertilizers, seeds, as well as for payment of agricultural services.

«AGROFIRMA «ORSHIVSKA» LLC is a part of one the leading crop production efficiency of the agro-industrial Corporation — «Svarog West Group». The land bank is 80 thousand ha, the main crops are cereals, legumes and sugar beet. During the rating process IBI-Rating agency took into account «AGROFIRMA «ORSHIVSKA» LLC’s forming part of «Svarog West Group», however, the credit rating of the bonds was updated based on the Issuer’s creditworthiness (excluding consolidated financial indicators).

The area of arable agricultural lands of «AGROFIRMA «ORSHIVSKA» LLC in Chernivtsi region is 4,9 thousand ha. The activities of the Issuer, like other agricultural enterprises, are seasonal and sensitive to the impact of natural and climatic conditions.

By results of 9 months of 2017 «AGROFIRMA «ORSHIVSKA» LLC has received UAH 102.3 mln of net income, which is by 37.3% more than in the same period of the previous year. However, the Issuer's activities were unprofitable due to the significant amount of financial expenses on bonds and bank loan. Net loss amounted to UAH 2.1 mln (net loss for the same period of the previous year amounted to UAH 8.1 mln).

In order to carry out the analytical research the materials obtained from «AGROFIRMA «ORSHIVSKA» LLC were use, including: the annual financial statements for 2014-2016 and 9 month 2017, parameters of the A series bond issue, other necessary internal information, as well as the information from the public sources, which the Rating agency considers reliable.

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