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 that «SVAROG-DNISTER» LLC’s is forming as a part of «Svarog West Group», however, the credit rating of the bonds was updated based only 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.

Net income of «SVAROG-DNISTER» LLC by 9 months of 2018 it amounted UAH 80 649 thousand, which is in 44.1% more than in the same period of the previous year. The result of the activity was a net profit - UAH 6 653 thousand, against UAH 13 066 thousand. net loss by 9 months of 2017.

The Issuer's debt is formed exclusively by obligations on placed interest-bearing bonds (UAH 100 000 thousand). 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 9 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.

Corporate department
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