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IBI-Rating has affirmed the credit rating of A series bonds of "Ruthenia M" PE at uaBBB
17.12.2015IBI-Rating informs on the affirmation of the long-term credit rating of the interest bearing bonds of A series of "Ruthenia M" Agricultural PE at uaBBB grade with a change in outlook from "stable" to "positive".
"Ruthenia M" Agricultural PE is 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. The issuer is engaged in growing of agricultural crops: wheat, sunflower, corn, barley and soybeans. The arable land area in Krivoozersky district of Mykolaiv oblast’ currently amounts to 3441 hectares. The company also owns two mechanized thrashing floor for grain processing and a grain-drying complex, seed purifying and special machines for grain cleaning, granary, garage economy, workshops and ancillary facilities, as well as agricultural machinery. The activity of "Ruthenia M" Agricultural PE, 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 "Ruthenia M" Agricultural PE improved its financial performance and increased the efficiency of its activities; it generated net profit in the amount of UAH 22.9 million, while the return on sales for the period accounted for 67,6 %, which is a proof of high performance indicators. The debt burden decreased to a low level. All of the above trends became a precondition for upgrading the outlook to "positive", which indicates the possibility of raising the rating in the event of the continuation of these trends.IBI-Rating also notes the information openness and transparency of "Ruthenia M" Agricultural PE.
A positive impact on the credit rating may have, as follows: growth of financial results at simultaneous improvement of performance indicators and maintaining the low 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, significant 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 "Ruthenia M" Agricultural PE were used, including the financial statements for 2012-2014 and 9 months of 2015, the background information on the activities of ""Ruthenia M" Agricultural 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
(044) 362-90-84
press(at)ibi.com.ua
"Ruthenia M" Agricultural PE is 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. The issuer is engaged in growing of agricultural crops: wheat, sunflower, corn, barley and soybeans. The arable land area in Krivoozersky district of Mykolaiv oblast’ currently amounts to 3441 hectares. The company also owns two mechanized thrashing floor for grain processing and a grain-drying complex, seed purifying and special machines for grain cleaning, granary, garage economy, workshops and ancillary facilities, as well as agricultural machinery. The activity of "Ruthenia M" Agricultural PE, 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 "Ruthenia M" Agricultural PE improved its financial performance and increased the efficiency of its activities; it generated net profit in the amount of UAH 22.9 million, while the return on sales for the period accounted for 67,6 %, which is a proof of high performance indicators. The debt burden decreased to a low level. All of the above trends became a precondition for upgrading the outlook to "positive", which indicates the possibility of raising the rating in the event of the continuation of these trends.IBI-Rating also notes the information openness and transparency of "Ruthenia M" Agricultural PE.
A positive impact on the credit rating may have, as follows: growth of financial results at simultaneous improvement of performance indicators and maintaining the low 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, significant 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 "Ruthenia M" Agricultural PE were used, including the financial statements for 2012-2014 and 9 months of 2015, the background information on the activities of ""Ruthenia M" Agricultural 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
(044) 362-90-84
press(at)ibi.com.ua