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IBI-Rating: a long-term credit rating of the SE «IA «Boryspil» has reached the highest grade - uaAAA

14.01.2019
The National Authorized Rating agency IBI-Rating informs on upgrading of the long-term credit rating of SE «IA «Boryspil» to uaAAA grade with a «stable» outlook.

Director of the corporate department of IBI-Rating agency Mr. Igor Dykyi has told: «The key factors that predetermine on the upgrading of the rating grade were the steady growth of financial results while maintaining very high profitability ratios, facilitated by the successful implementation of the approved development strategy. In addition, an effective debt policy provides a reduction in the debt burden, the level of which is estimated as low. Now the SE «IA «Boryspil» is the only one enterprise in the non-financial sector in Ukraine that has the highest possible credit rating grade – uaAAA».

«Determining of the maximum credit rating grade for an enterprise in the real sector is a positive signal for the country's economy and a unique fact. Previously, only a few foreign banks in Ukraine had this credit rating grade. «Boryspil» airport is the first state-owned enterprise that has carried out an effective transformation of the business model and can be proud of a radical improvement in ratios», — accentuated Deputy General Director of Economics and Finance of «Boryspil» airport Mr. Kyryl Zvonarov.

The SE «IA «Boryspil» has a strategic importance and maintains the status of the country's main airport with a powerful modern infrastructure, and its operational indicators demonstrate a steady improvement trend. According to the results of 2018, the total passenger traffic through the airport of the SE «IA «Boryspil» increased by more than in 2 million passengers and amounted to 12.6 million passengers. In September 2018, the airport topped the ACI Europe rating in a group of airports which serving from 10 to 25 million passengers in a year. The growth of passenger traffic is facilitated by the implementation of a «hub» development strategy, the attraction of new air carriers, and an increase in the level of service. Improving of the management efficiency and optimizing of business processes creates the potential for further development.

The growing dynamics of air transportation contributes to the growth of the net income of the SE «IA «Boryspil», the volume of which for 9 months 2018 amounted to UAH 3 167.7 million, which is in 7.7% more than in the same period of the previous year. Profit from operating activities amounted to UAH 1 865.4 million. Net profit increased by 5.1% - to UAH 1,375.2 million. Profitability indicators are estimated as very high: gross margin was 61%, operating margin - 59%, profitability (net profit) - 43%. The SE «IA «Boryspil» is one of the most profitable state-owned enterprises in Ukraine.

In the structure of the sources of financing the activities of the SE «IA «Boryspil», the equity capital prevails, the share of which increased to 73%, that indicates the strengthening of the level of financial independence. The amount of debt during the analyzed period decreased, all financial obligations are long-term. Binding airport charges to foreign currency significantly reduces the sensitivity to currency risk by foreign currency loans. Improving of the financial results while reducing the amount of debt contributed to reducing the level of debt burden - at the end of September 2018, the ratio of net debt to EBITDA calculated for 12 months decreased to 0.38x. The ability to debt service of the obligations (pay interest) is very high - covering net financial expenses with EBIT (Earnings Before Interest and Taxes) based on the results by 9 months of 2018 was 8.9 times.

SE «IA «Boryspil» demonstrates high liquidity indicators - the coverage ratio at the end of September 2018 was 2.2, the funds covered 86% of current liabilities. Net floating capital increased to UAH 946.4 million.

In order to conduct the analytical research, the materials provided by SE «IA «Boryspil», have been used, including: financial statements for 2015-2017 and 9 months of 2018, background information on activities of airport, information on the 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:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua