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IBI-Rating has affirmed credit ratings of series A, B coupon bonds of AGROFIRMA "Obriy» LTD at uaBBB grade
24.03.2016Rating agencyо IBI-Rating informs on the affirmation of long-term credit ratings of Series A, B coupon bonds of AGROFIRMA «Obriy» LTD at uaBBB with a «stable» outlook.
Bonds with a total nominal value of UAH 80 million maturing in August 2020 were issued to finance the purchase raw materials and supplies, as well as updating of equipment and mechanisms.
AGROFIRMA «Obriy» LTD forms a part of the vertically integrated agricultural holding «TAS AGRO». The Issuer focuses on the cultivation of cereals and oilseed crops on the farmland with a total area of 11.9 thousand ha in Talalayevsky district of Chernihiv oblast’. The Issuer has its own elevator of storage capacity of 40.6 thousand tons, certified by the State Inspection of Agriculture of Ukraine. The domestic agricultural sector is inherent in high sensitivity to the impact of such factors as climatic conditions and government regulation.
Based on the results of 2015, AGROFIRMA "Obriy» LTD generated net income in the amount of UAH 254,051 thousand from product sales, which exceeds by 3.4 times the results achieved in 2014, and was due to the increase in sales volume of crop production, including reserves. Activities of AGROFIRMA "Obriy» LTD were profitable, - in 2015 net profit amounted to UAH 107 332 thousand. Also notable are foreign currency earnings, which reduce the Issuer's sensitivity to foreign exchange risk.
Despite the increase in the volume of debt, which was also due to the placement of series A coupon bonds, debt burden of AGROFIRMA "Obriy» LTD has remained low due to the rapid growth of its financial results.
Currently the agency sees no reason to upgrade the credit ratings. A negative impact on the grade of credit ratings may have, as follows: failure to comply with debt obligations, decline of financial results and performance indicators, a significant increase in the level of debt burden, deterioration of the political and economic situation in the country.
In order to perform the analytical research the materials provided by AGROFIRMA "Obriy» LTD were used, including annual financial statements for 2013-2015, parameters of the issue of series A, B bonds, other necessary internal information, as well as the information from the public sources, which the rating agency considers reliable.
Corporate department Bonds with a total nominal value of UAH 80 million maturing in August 2020 were issued to finance the purchase raw materials and supplies, as well as updating of equipment and mechanisms.
AGROFIRMA «Obriy» LTD forms a part of the vertically integrated agricultural holding «TAS AGRO». The Issuer focuses on the cultivation of cereals and oilseed crops on the farmland with a total area of 11.9 thousand ha in Talalayevsky district of Chernihiv oblast’. The Issuer has its own elevator of storage capacity of 40.6 thousand tons, certified by the State Inspection of Agriculture of Ukraine. The domestic agricultural sector is inherent in high sensitivity to the impact of such factors as climatic conditions and government regulation.
Based on the results of 2015, AGROFIRMA "Obriy» LTD generated net income in the amount of UAH 254,051 thousand from product sales, which exceeds by 3.4 times the results achieved in 2014, and was due to the increase in sales volume of crop production, including reserves. Activities of AGROFIRMA "Obriy» LTD were profitable, - in 2015 net profit amounted to UAH 107 332 thousand. Also notable are foreign currency earnings, which reduce the Issuer's sensitivity to foreign exchange risk.
Despite the increase in the volume of debt, which was also due to the placement of series A coupon bonds, debt burden of AGROFIRMA "Obriy» LTD has remained low due to the rapid growth of its financial results.
Currently the agency sees no reason to upgrade the credit ratings. A negative impact on the grade of credit ratings may have, as follows: failure to comply with debt obligations, decline of financial results and performance indicators, a significant increase in the level of debt burden, deterioration of the political and economic situation in the country.
In order to perform the analytical research the materials provided by AGROFIRMA "Obriy» LTD were used, including annual financial statements for 2013-2015, parameters of the issue of series A, B bonds, other necessary internal information, as well as the information from the public sources, which the rating agency considers reliable.
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua