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

IBI-Rating informs on affirming of the long-term credit rating of A series interest-bearing bonds of «SPETSAGROPROEKT» LLC at uaBBB- grade with a «negative» outlook. The credit rating has been kept on the Credit Watch List. Keeping the rating on the Credit Watch List with a negative outlook is due to the martial law in connection with the invasion of Ukraine by Russian troops, which has a significant negative impact on the country's economic condition and financial stability.

The bonds with a nominal value of UAH 70 million maturing in 2029 were issued for the construction of the second stage of the elevator with an increased storage capacity for grain crops and to finance the company's current operations. The decision to place the A series bonds without a public offering was made on 01.10.2020 by the decision of the Issuer's shareholders.

The activities of «SPETSAGROPROEKT» LLC are focused on the reception, storage and shipment of grain crops. Accordingly, the Issuer's activities have a certain seasonality associated with the harvesting of grain crops, which causes unprofitable operating activities. The result of the activities of «SPETSAGROPROEKT» LLC for 3 months of 2023 was a net loss in the amount of UAH 43.1 million.

The amount of cash remains at a low level, so the Issuer's net debt amounts to UAH 65.9 million. The ratio of net debt to EBITDA was negative last year, due to low financial results, which indicates a high level of debt burden. «SPETSAGROPROEKT» LLC. Taking into account the seasonality of the elevator's operations, the Issuer's ability to meet its interest payment obligations will largely depend on the financial result and the ability to manage liquidity.

In order to conduct the analytical research, the materials provided by «SPETSAGROPROEKT» LLC have been used, including: annual financial statements for 2020-2022 and 3 months of 2023, 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 credible.

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