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IBI-Rating has affirmed the credit rating of the bonds of «Standard Agro» LLC

02.08.2018
IBI-Rating informs on affirming of the long-term credit rating of A series registered interest-bearing unsecured bonds of «Standard Agro» LLC (the issue amount is UAH 370 million, maturing in August 2019) at uaBB grade with a «stable» outlook.

In accordance with the issue prospectus, the purpose of the bond issue is financing of purchase of raw materials and supplies, renewal of machines and tractor fleet, agricultural equipment and mechanisms, major repairs of production and livestock premises, construction of modern energy efficient grain storage systems and mechanisms, servicing and maintenance of production and storage of products.

The activity of «Standard Agro» LLC, as well as that of other domestic agricultural enterprises, is highly sensitive to the impact of natural and climatic conditions. Seasonal nature of the Issuer should also be noted, as it causes fluctuations in the working capital.

Net income of «Standard Agro» LLC in the result of 2017 increased by 23% - to UAH 288,281 thousand, and for 3 months of 2018, increased by 15% - to UAH 14,252 thousand. The Issuer's activities were profitable - net profit amounted to UAH 34,829 thousand. for 2017 and UAH 530 thousand for the first quarter of 2018. Due to profitable activity, the volume of undistributed profit increased to UAH 179,260 thousand as of 31.03.2018, however, the share of own capital in the overall structure of sources of financing activities remained low (15%), indicating the maintenance of low financial independence.

The debt of «Standard Agro» LLC is formed only by the obligations on interest-bearing bonds of A series, the volume of which during the period under review remained unchanged and as of March 31, 2018 it amounted to UAH 45 million. Debt obligations are denominated in hryvnias, which reduces the Issuer's sensitivity to exchange rate fluctuations. Debt liabilities are accounted as long-term liabilities, while the terms of issue include the possibility of presenting bonds to early redemption.

The rating agency IBI-Rating also notes the lack of information transparency of the Issuer.

In order to conduct the analytical research the materials provided by «Standard Agro» LLC have been used, including: the annual financial statements for 2015-2017 and 3 months of 2018 , background information on activities of «Standard Agro» 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 credible.

Corporate department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua