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IBI-Rating has determined the credit rating of A series bonds of "ROZTOTSKE" LLC at uaBBB- grade

29.12.2015
IBI-Rating informs on assigning of the long-term credit rating to the registered secured coupon bonds of A series of "ROZTOTSKE" LLC (amount of the issue is UAH 430 million, maturing in August 2019) at uaBBB- grade, with a "stable" outlook.

Activities of "ROZTOTSKE" LLC, as well as other domestic agricultural enterprises, is highly sensitive to the impact of such factors, as climatic conditions, government regulation of the industry, prices of oil products and chemical fertilizers. The area of arable farmland of "ROZTOTSKE" LLC in Zborowski and Kremenets districts of Ternopol oblast’ amounts to 10.58 thousand ha. In recent years, the Issuer specialized mainly in the cultivation of such agricultural crops as corn, wheat and soybeans. Also of note is the seasonality of the Issuer's activity, which leads to fluctuations in working capital.

During the period under review the activities of "ROZTOTSKE" LLC were profitable. Net profit for the first 9 months of 2015 amounted to UAH 102, 147 thousand versus UAH 54, 125 thousand for the similar period of the previous year. All the debt obligations of "ROZTOTSKE" LLC are hryvnia denominated, which reduces the Issuer’s sensitivity to foreign currency risk in the conditions of devaluation of the hryvnia. Almost all the debt obligations are accounted for in long-term liabilities. It should be noted that the terms of the issue provide for the submission of bonds for early redemption. The level of debt burden is acceptable. IBI Rating also notes information openness and transparency of "ROZTOTSKE" LLC.

IBI-Rating does not yet see the factors that may lead to raising of the credit rating grade. Downgrading of the credit rating is possible in the event of default on debt obligations, decline in financial results and performance indicators, significant growth of debt burden.

In order to perform the analytical research the materials provided by "ROZTOTSKE" LLC were used, including the annual financial statements for 2012-2014 and 9 months of 2015, background information on the activities of "ROZTOTSKE" LLC, information on the issue of A series bonds, 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:
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