RA Expert Rating has affirmed the credit rating of KSG Agro at uaA +

On September 10, 2021, RA Expert-Rating committee made a decision to confirm the long-term credit rating of KSG Agro: on the national scale at uaA +, international scale at BBB. This news came from the press service of the agricultural holding.
According to the expert rating agency, the company’s (in this case, KSG Agro agricultural holding) uaA rating means high creditworthiness compared to other Ukrainian borrowers. The agency has updated its credit rating after analyzing the consolidated financial statements of KSG Agro for the first half of 2021 (http://www.expert-rating.com/rus/rating-list_individualnye_reitingi_promyshlennye_kompanii_ksg_agro_s.a._onovleno_reiting_ksg_agro_s.a./).
Justifying the confirmation of a sufficiently high credit rating to the KSG Agro agricultural holding, the experts of RA Expert-Rating noted: “During the period from June 30, 2020 to June 30, 2021, the equity capital of KSG Agro increased by 52.46% to $ 14.47 million, including due to the profitable activities of the holding and the reduction of retained losses. Over the same period, KSG Agro’s liabilities decreased by 12.52% to $ 55.7 million, mainly due to the sale of three subsidiaries in May 2021.
Among other factors in the conclusion, RA Expert-Rating named: a decrease in the volume of accounts receivable and payable for the period from June 30, 2020 to June 30, 2021 by 75.15% and 62.89%, respectively; prevalence of long-term loans in the structure of long-term liabilities of KSG Agro; net profit growth in the first half of 2021 by $ 13.42 million to $ 13.7 million
“The main factor in the growth of the agricultural holding’s profit in the period under review was the sale of its three subsidiaries. Thus, according to the results of the first half of 2021, KSG Agro demonstrated high profitability indicators, an increase in the level of coverage by its own capital of liabilities, profitable activities and a good level of ratio between EBITDA and loans,” the Expert-Rating concludes.
Recall that on June 8, 2021, at a meeting of the rating committee of RA Expert-Rating, it was decided to assign a credit rating to KSG Agro agricultural holding at the level of uaA + according to the national rating scale. In addition, the holding was assigned a BBB rating on an international scale (for comparison: Ukraine’s rating as a country is at B level). A company with such ratings, in this case KSG Agro, has a high creditworthiness compared to other borrowers.