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

23.01.2017
IBI-Rating informs on the renewal 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., due in August 2019 ) at uaBBB- grade with a change in the oulook from «stable» to «negative».

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.

During 9 months of 2016, net revenue of «Roztotske» LLC decreased, amounting to UAH 23.7 mln. versus the amount of UAH 79.4 mln. for the similar period of the previous year. Based on results of January-September 2016, the Issuer's activity was unprofitable, net loss amounted to UAH 0.9 mln. versus UAH 102.1 mln. of net profit for the similar period of the previous year. The decreased financial results, as well as decline in the information openness of the Issuer have caused the review of the outlook of the credit rating of bonds.

During the period under review, the amount of debt of «Roztotske» LLC, formed exclusively by liabilities on the interest-bearing A series bonds, remained unchanged and as at 30.09.2016, amounted to UAH 430 mln.

Debt obligations are denominated in hryvnia, reducing the Issuer’s sensitivity to foreign currency risk in conditions of the hryvnia devaluation. Debt obligations are accounted for under long-term liabilities, and the issue terms provide for the possibility of demand of early redemption of bonds. Decrease in financial results led to the increased level of debt burden, despite the fact that the amount of debt remained unchanged.

In order to conduct the analytical research the materials provided by «Roztotske» LLC have been used, including: the annual financial statements for 2013-2015 and 9 months of 2016 , background information on activities of «Roztotske» LLC, 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.

 
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