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IBI-Rating has affirmed the credit ratings of «SK-AGRO» Ltd and its interest-bearing bonds of В series

11.07.2016
IBI-Rating informs on affirming of the long-term credit ratings of «SK-AGRO» Ltd and its interest-bearing bonds of B series at uaBBB+ grade, with a «stable» outlook.

«SK-AGRO» Ltd is a part of «AGROTRADE» and has been working in the domestic market since 2006. «AGROTRADE» Group (founded in 1998) is included in the list of top 10 Ukrainian grain traders and controls about 3% of the export grain market. The parent company of the Group is Agrotrade Group SA (Luxembourg). The Group is a vertically integrated holding of agroindustrial completed cycle, i.e. production, processing, storage and trade in agricultural products.

In 1Q 2013, «SK-AGRO» Ltd. carried out the debut issue of interest-bearing bonds of A series (UAH 40 mln.) and B series (UAH 120 mln.) maturing on 05.02.2014 and 30.12.2016, respectively. Financial resources, raised from sale of bonds, are aimed at replenishment of working capital, purchase of agricultural machinery, as well as the acquisition of new agricultural enterprises. Fulfillment under the bond obligations are secured by suretyship of Agrotrade Group S.A. The bonds of A Series were redeemed within the period, provided for in the issue prospectus.

The Rating agency notes the information openness of «SK-AGRO» Ltd, moderate sensitivity to foreign currency risk, due to the available significant amount of foreign currency earnings at the Group level, as well as the available production and transport capacities, which reduces dependence on certain counterparties and has a positive impact on performance Indicators. Such features as seasonality, high sensitivity to the impact of natural and climatic conditions and government regulation are typical for activities of the Issuer, as well as for other agricultural enterprises.

By results of 2015, «SK-AGRO» Ltd generated net income to the amount of UAH 310.1 mln. The result of activities was net profit amounting to UAH 30.7 mln.

In order to carry out the analytical research the materials provided by«SK-AGRO» Ltd have been used, including: financial statements of the Issuer for 2013-2015, background information on the activities, 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