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IBI-Rating has affirmed the credit rating of B series bonds of Meat processing plant "Globino" LCC

11.11.2016
Rating agency IBI-Rating informs on affirming of the long-term credit rating of interest-bearing B series bonds of Meat processing plant "Globino" LCC at uaA grade, with a «stable» outlook.

Meat processing plant "Globino" LCC is part of a vertically integrated group of companies "Globyno" which occupies a leading position in the domestic market of meat and sausages. The issuer has the necessary production facilities, a wide range of products, has a significant level of own raw materials (production subsidiary) and the adjusted sales system. The company is focused on the domestic market, realizing a significant volume of products through national retail chains. The agency notes the competition in the domestic market of meat and sausage in low purchasing power, and the difficult economic situation in the country, which adversely affects the growth potential and the ability of economic agents.

Net income of Meat processing plant "Globino" LCC for 6 months 2016 increased by 11.1% to 946.4 million UAH. Financial result from operating activities was the profit of 12.1 million UAH, against a loss of 55.4 million UAH for the same period last year. However, the net financial result remained negative due to non-operating losses from exchange rate differences on currency devaluation. The amount of damage reduced significantly, reaching 26.1 million UAH, against 87.6 million UAH the first half of 2015.

The decision to open a public offering registered interest unsecured bonds of B series in the amount of 100 million UAH was adopted by the general meeting of participants of Meat processing plant "Globino" LCC in September 2012. Bonds worth 15 million UAH was actually place. The obligations on the bonds at the end of June 2016 amounted at 7.7 million UAH.

The obligation of Meat processing plant "Globino" LCC for foreign currency loans from international financial institutions at the end of June 2016 amounted to 20.1 million USD, or 498.8 million UAH eq. A significant amount of loans in foreign currency Issuer increases sensitivity to currency risk. Improved financial results of the Issuer for the first half of 2016 and the reduction of debt resulted in reducing the debt burden on the issuer, which assessed as still significant.

Corporate department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua