The RA “Expert-Rating”’s credit rating of KSG Agro has been updated at the level of uaА +

On May 23, 2021, RA “Expert-Rating”’s rating committee decided to update the long-term credit rating of KSG Agro: on the national scale at the level of uaA + and on the international scale of the agency at the level – BBB. This was reported by the press service of the agricultural holding with reference to RA “Expert-Rating”.
According to the agency, KSA Agro with a rating of uaA is characterized by high creditworthiness compared to other Ukrainian borrowers or debt instruments. The level of creditworthiness is sensitive to the impact of adverse commercial, financial and economic conditions. The agency updated its credit rating after analyzing the data of the consolidated financial statements of KSG Agro for 2021.
Commenting on the update of KSG Agro’s rating at a traditionally high level, RA Expert-Rating experts noted: “During 2021, KSG Agro’s equity grew 4.34 times and amounted to $ 23.33 million as of the beginning of 2022. The main factor in the growth of this indicator was the company’s profitable activities. During 2021, KSG Agro’s liabilities decreased by 16.44% to $ 48.11 million. The corresponding movement of indicators led to an increase in the ratio between equity and liabilities of KSG Agro by 39.15 percentage points in the analyzed period, to up to 48.50%. The Agency has positively assessed a significant increase in the level of KSG Agro’s equity.”
It is equally important that in the structure of long-term liabilities of KSG Agro as of 31.12.2021 the predominant share was occupied by long-term loans, the volume of which in the analyzed period increased by 1.73% to $ 24.94 million, short-term loans for the period from 31.12.2020 to 31.12.2021 decreased by 8.03% and amounted to $ 2.65 million.
Experts noted that sales of the company’s products in the analyzed period continued to grow. “Revenue from sales in 2021 amounted to $ 30.75 million, which is 44.09% higher than in 2020. In turn, the net profit of KSG Agro in 2021 increased compared to 2020 by $ 19 million (almost 16 times) to $ 20.27 million. Among the factors of growth of the Company’s profit in the analyzed period is a significant increase in sales. The major improvement in the KSG Agro’s financial results had a positive effect on the company’s profitability indicators, which in 2021 became very high.
An analysis of the consolidated financial statements of KSG Agro showed that EBITDA in 2021 compared to 2020 has more than doubled to $ 12.28 million, and the ratio between EBITDA in 2021 and the volume of loans as of 31.12.2021 increased to 45.55%. The corresponding value of this indicator indicates a high level of solvency of the company.
Analyzing KSG Agro’s consolidated financial statements for 2021, the agency notes a significant increase in the level of equity coverage of liabilities, increased financial results, high performance of the company, as well as a good ratio between EBITDA and loans.