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IBI-Rating has affirmed the credit rating of A series bonds of "Novy Svet" PE at uaBBB

17.12.2015
IBI-Rating informs on affirming of the long-term credit rating of the interest-bearing bonds of A series of "Novy Svet" PE at uaBBB grade with a "stable" outlook.

"Novy Svet" PE forms a part of the vertically integrated agricultural holding "TAS AGRO". The bonds of a par value of UAH 50 million were issued to finance the purchase of raw materials and supplies, as well as updating of equipment and mechanisms of "Novy Svet" PE. The company is engaged in growing of agricultural crops: winter wheat, sunflower, corn, winter barley and soybeans on agricultural land of the total area of more than 3.3 thousand ha in Kirovograd oblast’. The Issuer's activity, as well as the activity of other domestic agricultural enterprises, is highly sensitive to the impact of such factors as natural and climatic conditions, government regulation of the industry, prices for petroleum products and chemical fertilizers. Also of note is the seasonality of the Issuer's activity, which leads to fluctuations in working capital. In the first 9 months of 2015 "Novy Svet" PE generated net profit in the amount of UAH 10.4 million, return on sales for the period accounted for 34.7%, which is a proof of high performance indicators. The level of debt burden is acceptable.

IBI-Rating also notes the information openness and transparency of "Novy Svet" PE. A positive impact on the credit rating may have, as follows: the growth of financial results at simultaneous improvement of performance indicators and the reduction of the level of debt burden. A negative impact on the credit rating may have, as follows: failure to fulfill its debt obligations, decline in financial results and performance indicators, growth of debt burden, deterioration of the political and economic situation in the country.

In order to carry out the analytical research the materials received from "Novy Svet" PE were used, including the financial statements for 2012-2014 and 9 months of 2015, the background information on the activities of "Novy Svet" PE, the information on the issue of bonds of A series, other necessary internal information as well as the information from the public sources, which the Rating agency considers reliable.

Corporate department
For more information please contact:
Press service of IBI-Rating
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press(at)ibi.com.ua