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IBI-Rating has updated the credit rating of SE «IA «Boryspil»
15.01.2020The National Authorized Rating Agency IBI-Rating informs on affirming of the long-term credit rating of SE «IA «Boryspil» at uaAA grade with withdrawal from the Rating Checklist, the rating outlook is «evolving».
SE «IA «Boryspil» has strategic importance and holds the status of the country’s main airport with the largest modern infrastructure, and its operating indicators show a steady growth trend. According to the results by 9 months of 2019, the total passenger flow through the airport increased, compared to the same period of the previous year, by 22.5% - up to 11.6 million passengers. Uncertainty remains regarding the increase in the basic standard for the deduction of the share of profit, which is used to pay dividends to the state budget. The volatility of state regulatory policy may affect on the servicing of debt obligations and the implementation of investment projects of SE «IA «Boryspil».
Net income of SE «IA «Boryspil» by 9 months of 2019 amounted to UAH 3,435.5 million, which is 7.8% more than in the same period of the previous year. Gross profit amounted to UAH 1 885.6 million (3.8%), operating profit - UAH 1 733.5 million (-6.2%). In January-September 2019 the result of activities of SE «IA «Boryspil» was a net profit in the amount of UAH 1 382.9 million, which is 1% more than by 9 months of 2018 year. Attracting additional passenger traffic contributes to an increase in net income, however, a decrease in airport charges and the use of incentive factors determine a decrease in profitability. Despite a slight decrease, the effectiveness of the SE «IA «Boryspil» according to the results by 9 months of 2019 is rated as very high.
The liquidity indicators of the SE «IA «Boryspil» continued to grow and are assessed as very high - at the end of September 2019, the coverage ratio was 2.8x, cash was 1.3 times higher than current liabilities. Net working capital increased to UAH 1,378.2 million.
The share of equity capital in the general structure of sources of financing the activities of the SE «IA «Boryspil» increased to 71% as of September 30, 2019, which indicates a high level of financial independence. During the analyzed period, the debt volume gradually increased due to tranches within the framework of credit lines. The vast majority of debt obligations are accounted as long-term. The sensitivity to currency risk, due to the significant amount of debt denominated in foreign currency, is minimized by linking airport charges to foreign currency.
The debt burden at the end of September 2019 has decreased, compared with the beginning of the year, and is estimated as low: the ratio of net debt to EBITDA (calculated for the previous 12 months) was 0.32x, against 0.49x at the end of 2018.
In order to conduct the analytical research, the materials provided by SE «IA «Boryspil», have been used, including: financial statements for 2016-2018 and 9 months of 2019, background information on activities of Airport's, information on the bond issue, 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
SE «IA «Boryspil» has strategic importance and holds the status of the country’s main airport with the largest modern infrastructure, and its operating indicators show a steady growth trend. According to the results by 9 months of 2019, the total passenger flow through the airport increased, compared to the same period of the previous year, by 22.5% - up to 11.6 million passengers. Uncertainty remains regarding the increase in the basic standard for the deduction of the share of profit, which is used to pay dividends to the state budget. The volatility of state regulatory policy may affect on the servicing of debt obligations and the implementation of investment projects of SE «IA «Boryspil».
Net income of SE «IA «Boryspil» by 9 months of 2019 amounted to UAH 3,435.5 million, which is 7.8% more than in the same period of the previous year. Gross profit amounted to UAH 1 885.6 million (3.8%), operating profit - UAH 1 733.5 million (-6.2%). In January-September 2019 the result of activities of SE «IA «Boryspil» was a net profit in the amount of UAH 1 382.9 million, which is 1% more than by 9 months of 2018 year. Attracting additional passenger traffic contributes to an increase in net income, however, a decrease in airport charges and the use of incentive factors determine a decrease in profitability. Despite a slight decrease, the effectiveness of the SE «IA «Boryspil» according to the results by 9 months of 2019 is rated as very high.
The liquidity indicators of the SE «IA «Boryspil» continued to grow and are assessed as very high - at the end of September 2019, the coverage ratio was 2.8x, cash was 1.3 times higher than current liabilities. Net working capital increased to UAH 1,378.2 million.
The share of equity capital in the general structure of sources of financing the activities of the SE «IA «Boryspil» increased to 71% as of September 30, 2019, which indicates a high level of financial independence. During the analyzed period, the debt volume gradually increased due to tranches within the framework of credit lines. The vast majority of debt obligations are accounted as long-term. The sensitivity to currency risk, due to the significant amount of debt denominated in foreign currency, is minimized by linking airport charges to foreign currency.
The debt burden at the end of September 2019 has decreased, compared with the beginning of the year, and is estimated as low: the ratio of net debt to EBITDA (calculated for the previous 12 months) was 0.32x, against 0.49x at the end of 2018.
In order to conduct the analytical research, the materials provided by SE «IA «Boryspil», have been used, including: financial statements for 2016-2018 and 9 months of 2019, background information on activities of Airport's, information on the bond issue, 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