IBI-Rating has affirmed the credit rating of the bonds of «SVAROG-DNISTER» LLC

IBI-Rating informs on the affirmation of the long-term credit rating of interest A series bonds of «SVAROG-DNISTER» LLC at uaBBB grade with a «stable» outlook. The bonds of par value amounting to UAH 100 mln. maturing in 2023 were issued for paying for agricultural services, financing the purchase of crop protection agents, mineral fertilizers, seeds, as well as repaying of financial support.

«SVAROG-DNISTER» 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 «SVAROG-DNISTER» 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 «SVAROG-DNISTER» LLC in Khmelnitsky region is 6.3 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 9 months 2017, the net income of «SVAROG-DNISTER» LLC amounted to UAH 56 mln. Operating profit amounted to UAH 5.6 mln, however, the activity was unprofitable - the net loss amounted to UAH 13 mln. as a result of rising financial expenses on interest-bearing bonds.

In order to carry out the analytical research the materials obtained from «SVAROG-DNISTER» LLC were used, including: the annual financial statements for 2014-2016 and 9 months of 2017, 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
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