IBI-Rating has affirmed the credit rating of A series bonds of «SVAROG-DNISTER » LLC at uaBBB grade

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 of par value amounting to UAH 100 mln. maturing in 2023 were issued for paying for agricultural services, financing the purchase of crop protection agents, mineral fertilizers, seeds, as well as repaying of financial support.

«SVAROG-DNISTER» LLC LLC forms a part of "Svarog West Group" agro-industrial corporation, whose land bank in Khmelnytsky, Chernivtsi and Zhytomyr regions amounts to 80 thousand ha. During the rating process IBI-Rating agency took into account «SVAROG-DNISTER» LLC’s forming 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 region increased to 6.3 thousand ha by the end of 2015. Key financial results of the Issuer demonstrate positive dynamics, i.e. - net income of 2015 increased by 60%, amounting to UAH 175, 726 thousand, while net profit rose to UAH 49, 376 thousand. As at the end of 2015, the Issuer had no debt burden. It is expected that in the event of placement of the A series bonds issue, which began in February 2016, the level of debt burden will be within acceptable limits.

IBI-Rating does not see the factors that may have an impact on raising of the credit rating grade. Downgrading of the credit rating is possible in the event of default on debt obligations, decreased financial results and performance indicators, substantial growth of the debt burden level, deterioration of the political and economic situation in the country.

In order to carry out the analytical research the materials obtained from «SVAROG-DNISTER» LLC were used, including: the annual financial statements for 2013-2015, 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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