IBI-Rating has determined the credit rating of bonds of «Vorobiivske-Agro» LLC

IBI-Rating informs on the determining of the credit rating of the unsecured interest bonds of A Series (the nominal volume of the issue is UAH 210 million with maturity in August 2019) of «Vorobiivske-Agro» LLC at uaBBB- grade, with outlook «in development».

The bonds, according to the prospectus were issued to finance the purchase of raw materials and supplies; renewal of machine and tractor fleet, agricultural equipment and machinery; overhauls of industrial and livestock buildings; construction of modern energy-efficient grain storage systems mechanisms; production and storage of products.

«Vorobiivske-Agro» LLC is a member of the Ukrlandfarming group, which is the most powerful vertically integrated agricultural holding in Ukraine. The IBI-Rating takes into account the Issuer's entry into the Ukrlandfarming group, however, the credit rating of interest-bearing bonds is determined on the basis of the creditworthiness of «Vorobiivske-Agro» LLC itself.

«Vorobiivske-Agro» LLC is characterized by significant fluctuations in financial results. Thus, according to the results of 2017, net income increased to UAH 44,064 thousand, against UAH 3,737 thousand for the previous year, and net profit amounted to UAH 1,162 thousand, against UAH 95 thousand. By 9 months of 2018, net income amounted to UAH 1,627 thousand, while for the same period of the previous year - UAH 32,795 thousand. The result of the activities by 9 months of 2018 was a net loss in the amount of UAH 28,992 thousand, against UAH 5,986 thousand of net profit for 9 months of 2017.

Debt of «Vorobiivske-Agro» LLC is formed by liabilities on interest-bearing bonds of A series, which as at 30.09.2018 amounted to UAH 49.4 million, as well as loan obligations (UAH 237.9 million). All debt obligations are recorded as long-term, while the terms of the issue provide for the possibility of presenting bonds for early redemption. Given the negative values of equity and profitability of activities for the first 9 months of 2018, the level of debt load is estimated as high.

The activity of «Vorobiivske-Agro» LLC, as well as other domestic agricultural enterprises, has a high sensitivity to the effects of natural and climatic conditions. Also noteworthy is the seasonality of the Issuer's activities, which leads to fluctuations in working capital.

In order to carry out the analytical research the materials provided by «Vorobiivske-Agro» LLC have been used, including financial statements of the Issuer for 2015-2017 and 9 months of 2018, the background information on the activities of«Vorobiivske-Agro» LLC, the 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 credible.

Corporate department
For additional information please contact:
Press office of IBI-Rating
(044) 362-90-84