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IBI-Rating has affirmed the credit rating of bonds of «SPETSAGROPROEKT» LLC
22.05.2024
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 in 2023 was a net loss of UAH 67.2 million, which is 37% more than in 2022. However, in the first quarter of 2024, the company managed to make a profit of UAH 856 thousand.
The amount of cash remains at a low level, so the Issuer's net debt amounts to UAH 63.2 million. However, given the seasonality of the elevator's operations, the amount of cash resources may be temporary. Taking into account these factors, as of the beginning of April 2024, the debt burden is high, and the ability of «SPETSAGROPROEKT» LLC to fulfill 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 2021-2023 and 3 months of 2024, 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.
Corporate Department
For more information, please contact us:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
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 in 2023 was a net loss of UAH 67.2 million, which is 37% more than in 2022. However, in the first quarter of 2024, the company managed to make a profit of UAH 856 thousand.
The amount of cash remains at a low level, so the Issuer's net debt amounts to UAH 63.2 million. However, given the seasonality of the elevator's operations, the amount of cash resources may be temporary. Taking into account these factors, as of the beginning of April 2024, the debt burden is high, and the ability of «SPETSAGROPROEKT» LLC to fulfill 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 2021-2023 and 3 months of 2024, 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.
Corporate Department
For more information, please contact us:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua