IBI-Rating has affirmed the credit rating of bonds of «Globinsky Meat Plant» LLC

Rating agency IBI-Rating informs on affirming of the long-term credit rating of B series interest-bearing bonds of «Globinsky Meat Plant» LLC at uaA grade, with a «stable» outlook.

«Globinsky Meat Plant» LLC forms a part of the vertically integrated group of companies «Globino», which holds leading positions in the domestic market of meat and sausage products. The Issuer has the necessary production facilities, a wide range of products, a significant level of its own raw materials (products of its subsidiary company), as well as a well-established sales system. The company is focused on the domestic market, selling a substantial volume of products through national retail networks. The Agency notes competition in the domestic market of meat and sausage products in the conditions of low purchasing power of the population, as well as the difficult economic situation in the country, which negatively affects the growth potential and solvency of economic entities.

In 2016, net revenue of «Globinsky Meat Plant» LLC increased by 6.6%, as compared with the previous year, amounting to UAH 2 064.3m, while the activity remained unprofitable, but net loss decreased to UAH 37.9m, versus 70.5m in 2015. By results of 3 months of 2017, net revenue continued to grow to the amount of UAH 508.9m (+18% as compared with Q1 2016), but activities (including the operational activity) were unprofitable. Net loss for 3 months of 2017 amounted to UAH 4.4m, while for the similar period of the previous year it amounted to UAH 46.1m.

The decision on the open public placement of registered interest-bearing unsecured bonds of В series for the amount of UAH 100m was adopted by the general meeting of participants of «Globinsky Meat Plant» LLC in September 2012. Actually, bonds worth of UAH 15m were placed. During the period under review, liabilities on bonds decreased to the amount of UAH 2.3m, as at 31.03.2017.

Liabilities of «Globinsky Meat Plant» LLC under foreign currency loans from international financial institutions, as at the end of March 2017, amounted to USD 20.1m or equivalent of UAH 541.4m. A significant amount of foreign currency loans increases the Issuer's sensitivity to foreign currency risk. The improvement of the Issuer's financial results, as well as the reduced volume of debt obligations led to a reduction in the debt burden to an acceptable level.