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

IBI-Rating informs on the affirming 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. were issued with maturity in 2023 to finance the purchase of mineral fertilizers and crop protection agents, as well as for payment of agricultural services.

«EURASIA-SERVICE» LLC is a part of «Svarog West Group» one of the leading effectiveness 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 that «EURASIA-SERVICE» LLC’s is forming as 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 oblast is exceeds 2 thousand ha. The activities of the Issuer, like other agricultural enterprises, are seasonal and sensitive to the impact of natural and climatic conditions.

By the results of 2018, net income of «EURASIA-SERVICE» LLC amounted to UAH 74 022 thousand, which by 1.1% more than in the previous year. The result of the activity was a net profit in amount of UAH 3 454 thousand, the amount of retained earnings increased to UAH 121 707 thousand as of December 31, 2018. The Issuer's debt is formed exclusively by interest bearing bonds. Taking into account the long-term nature of debt obligations (repayment of bonds falls by 2023, and the possibility of presentation to early repayment is not provided), the debt burden is rated as moderate.

In order to carry out the analytical research the materials obtained from «EURASIA-SERVICE» LLC have been used, including: the annual financial statements for 2016-2018, 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.

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