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IBI-Rating has determined the credit rating of Series A bonds of "Agrofirma "Skhid Agro" LLC at uaBBB- grade
20.10.2015IBI-Rating informs on assigning of the long-term credit rating to series A interest bearing bonds of "Agrofirma "Skhid Agro" LLC at uaBBB- with a" stable "outlook.
The bonds of "Agrofirma "Skhid Agro" LLC of the total nominal value of UAH 40 million maturing in August 2020 were issued to finance the purchase of raw materials, as well as updating equipment and machinery. Activities of "Agrofirma "Skhid Agro" LLC are focused on the cultivation of cereals and oilseed crops on the agricultural land of the total area of 8.88 thousand ha in Mezhevsky district of Dnipropetrovsk oblast’. The domestic agricultural sector is inherent in high sensitivity to the impact of such factors as natural and climate conditions, government regulation, and fluctuations in prices for agricultural products. The Issuer's activity is characterized by significant seasonality, since most of its annual net revenue is generated during the second half of the year during sales of agricultural products of the new crop. In 2014, its net revenue tripled to UAH 79.6 million, net income amounted to UAH 16.2 million. At the same time, the activities for the period of 6 months of 2015 were loss-making. The issuer's equity, formed mainly by retained earnings and authorized capital, accounted for 49% of the funding sources at the end of June 2015, which indicates an acceptable level of its financial independence. The debt burden is expected to increase after the placement of bonds, but it has to remain at an acceptable level.
A positive impact on the credit rating may have the following: the growth of financial results along with the improved performance indicators and maintaining an acceptable level of the debt burden. A negative impact on the credit rating may have the following: failure to meet its debt obligations, reduced financial results and decline in performance indicators, a substantial growth of debt burden, deterioration of the political and economic situation in the country.
In order to carry out the analytical research the materials provided by "Agrofirma "Skhid Agro" LLC were used, including the financial statements for 2012-2014 and 6 months of 2015, parameters of the series A bond issue, other necessary internal information as well as the information from 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
The bonds of "Agrofirma "Skhid Agro" LLC of the total nominal value of UAH 40 million maturing in August 2020 were issued to finance the purchase of raw materials, as well as updating equipment and machinery. Activities of "Agrofirma "Skhid Agro" LLC are focused on the cultivation of cereals and oilseed crops on the agricultural land of the total area of 8.88 thousand ha in Mezhevsky district of Dnipropetrovsk oblast’. The domestic agricultural sector is inherent in high sensitivity to the impact of such factors as natural and climate conditions, government regulation, and fluctuations in prices for agricultural products. The Issuer's activity is characterized by significant seasonality, since most of its annual net revenue is generated during the second half of the year during sales of agricultural products of the new crop. In 2014, its net revenue tripled to UAH 79.6 million, net income amounted to UAH 16.2 million. At the same time, the activities for the period of 6 months of 2015 were loss-making. The issuer's equity, formed mainly by retained earnings and authorized capital, accounted for 49% of the funding sources at the end of June 2015, which indicates an acceptable level of its financial independence. The debt burden is expected to increase after the placement of bonds, but it has to remain at an acceptable level.
A positive impact on the credit rating may have the following: the growth of financial results along with the improved performance indicators and maintaining an acceptable level of the debt burden. A negative impact on the credit rating may have the following: failure to meet its debt obligations, reduced financial results and decline in performance indicators, a substantial growth of debt burden, deterioration of the political and economic situation in the country.
In order to carry out the analytical research the materials provided by "Agrofirma "Skhid Agro" LLC were used, including the financial statements for 2012-2014 and 6 months of 2015, parameters of the series A bond issue, other necessary internal information as well as the information from 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