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

16.12.2016
IBI-Rating informs on the affirmation of the long-term credit rating of interest A series bonds of «EURASIA-SERVICE» LLC at uaBBB grade with a «stable» outlook. The bonds with a par value of UAH 50 mln. issued with maturity in 2023, were issued to finance the purchase of mineral fertilizers and cropt protection agents, as well as for payment of agricultural services.

«EURASIA-SERVICE» LLC
forms a part of "Svarog West Group" one of the leading performance of crop agro-industrial corporation. The land bank amounts to 80 thousand ha, the main crops are cereals, legumes and sugar beet. During the rating process IBI-Rating agency took into account «EURASIA-SERVICE» 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 «EURASIA-SERVICE» LLC in Khmelnitsky region is 2,75 thousand ha. By the results of 9 month 2016, the Issuer’s net income amounted to UAH 24 155. It is expected that in the event of placement of the A series bonds issue, which began in February 2016, the debt burden level will be within acceptable limits. As a result, of placement of interest-bearing bonds, series A debt load level is assessed as acceptable.

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 «EURASIA-SERVICE» LLC were use, 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.

Corporate department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua