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

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

«EURASIA-SERVICE» 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 «EURASIA-SERVICE» 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 «EURASIA-SERVICE» LLC in Khmelnitsky region is 2.75 thousand ha. The activities of the Issuer, like other agricultural enterprises, are seasonal and sensitive to the impact of natural and climatic conditions.

Net income of «EURASIA-SERVICE» LLC for 9 months of 2017, compared to the same period of the previous year, increased by 4% and amounted to UAH 25.1 million, but the net result of the activity was a net loss of UAH 1.6 million, which was caused by a significant amount of financial expenses for bonds placed.

In order to carry out the analytical research the materials obtained from «EURASIA-SERVICE» LLC were use, 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
(044) 362-90-84