IBI-Rating has updated the credit rating of the bonds of «Roztotske» LLC

IBI-Rating informs on downgrading of the long-term credit rating of the registered interest-bearing unsecured A Series bonds of «Roztotske» LLC (the issue amount is UAH 430 mln., with redemption in August 2019) from uaBBB- grade with a «negative» outlook to uaBB+ grade with a «stable» outlook.

The revision is due to a decrease in the level of information openness of the Issuer, which does not allow maintaining the credit rating at the investment level.

The activity of «Roztotske» LLC, as well as that of other domestic agricultural enterprises, is highly sensitive to the impact of natural and climatic conditions. Also, the seasonality of the Issuer's activity leading to fluctuations in its working capital, should be noted.

The net income of «Roztotske» LLC for 9 month of 2017 amounted UAH 50.3 mln., which is in 2.1 times more than at the same period of the previous year. At the same time, profit from operating activities decreased by 2.2 times - up to UAH 6.55 mln. The result of activity for 9 months of 2017 was a net profit of UAH 1.3 mln., against UAH. 0.9 mln. net loss for the same period of the previous year. Most of the profitability indicators (with the exception of profitability of sales) were lower, compared to the same period of the previous year.

The debt of «Roztotske» LLC is formed solely by obligations on interest-bearing bonds of A Series, the volume of which as a result of partial redemption was reduced to amount UAH 49.9 mln. as at the end of September 2017, as well as at the beginning of the year. Debt obligations are accounted for as part of long-term obligations, while the terms of the issue provide for the possibility of presenting bonds for early redemption.

In order to conduct the analytical research the materials provided by «Roztotske» LLC have been used, including: the financial statements for 2014-2016 and 9 months of 2017, information on the issue of A Series bonds, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Corporate department

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