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

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

«EURASIA-SERVICE» LLC is a part of «Svarog West Group» one of the leading effectiveness 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 that «EURASIA-SERVICE» LLC is forming as 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 Khmelnytska oblast is exceeds 2 thousand ha. The activities of the Issuer, like other agricultural enterprises, are seasonal and sensitive to the impact of natural and climatic conditions.

Following the results by 9 months of 2019, the net income of «EURASIA-SERVICE» LLC amounted to UAH 153,353 thousand, which is in 2.9 times higher than the result of the same period of the previous year. Net profit amounted to UAH 21,801 thousand, against UAH 5,535 thousand by 9 months of 2018. Retained earnings increased to UAH 143,508 thousand as of September 30, 2019. The Issuer's debt is formed exclusively by interest bearing bonds. Taking into account the long-term nature of debt obligations (repayment of bonds falls by 2023, and the possibility of presentation to early repayment is not provided), the debt burden is rated as moderate.

In order to carry out the analytical research the materials obtained from «EURASIA-SERVICE» LLC have been used, including: the annual financial statements for 2016-2018 and 9 months of 2019, 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.

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