IBI-Rating has affirmed the credit rating of the bonds of «SVAROG-DNISTER» LLC

IBI-Rating informs on the affirmation of the long-term credit rating of interest A series bonds of «SVAROG-DNISTER» LLC at uaBBB grade with a «stable» outlook. The bonds with a par value of UAH 100 mln. were issued with maturity in 2023 to finance the agricultural services, the purchase of crop protection agents, mineral fertilizers, seeds, as well as repaying of financial support.

«SVAROG-DNISTER» LLC is a part of «Svarog West Group» one of the leading effectiveness of crop agro-industrial corporation. The land bank of the corporation amounted to 80 thousand ha, the main crops are cereals, legumes and sugar beet. During the rating process IBI-Rating agency took into account «SVAROG-DNISTER» LLC’s is a 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 land of «SVAROG-DNISTER» LLC in Khmelnitsky oblast is 6.24 thousand ha. The activities of the Issuer, like other agricultural enterprises, are seasonal and sensitive to the impact of natural and climatic conditions.

By the results of 2017, the net income of «SVAROG-DNISTER» LLC amounted to UAH 146,439 thousand, and net profit - UAH 2,373 thousand. During for 3 months of 2018 was received UAH 32,044 thousand of net income, which is by 83.6% higher than in Q1 of 2017. The result of the activity was a net loss for UAH 9,219 thousand, as the operating profit did not cover financial expenses on placed bonds. Taking into account the long-term debt (bond repayment will occur in 2023, and the presentation for early redemption is not provided for in the issue terms), the debt burden of the Issuer is assessed as acceptable.

In order to carry out the analytical research the materials obtained from «SVAROG-DNISTER» LLC have been used, including: the annual financial statements for 2015-2017 and 3 months of 2018, 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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