KSG Agro’s stable operation during the war made it possible to update its credit rating in the first quarter by RA “Expert-Rating” to uaA+ level.

The stable operation of KSG Agro, in particular, its pig breeding complex, during the war made it possible to confirm its credit rating by RA “Expert Rating” in the first quarter at uaA+ level. This was reported by the press service of the holding with reference to the report of the rating agency Expert Rating.


With the beginning of full-scale hostilities in Ukraine, KSG Agro agricultural holding has taken a set of measures to ensure uninterrupted operation in the field of crop production and pig breeding complex, whose activities relate to the sphere of food security of Ukraine. Thus, the logistics chains were revised, the issue of providing transport with safe routes for the delivery of products was resolved, the staff was motivated by a two-fold increase in wages, and a strategic stock of animal feed was formed. In order to ensure uninterrupted activity of the team with the support of the Association of Pig Breeders of Ukraine through the Dnipropetrovsk Regional State Administration, lists of employees were submitted to the Ministry of Agrarian Policy in order to secure them from being drafted. Such a strategy of the holding, which led to its uninterrupted operation and deliveries, was highly appreciated by RA Expert-Rating, which at the beginning of August updated the long-term credit rating of KSG Agro in the first quarter using a national scale at the level of uaA+ (rating on the international scale of the Agency – at the level of BBB).

Important to recall that a borrower with a rating of uaA is characterized by high creditworthiness compared to other Ukrainian borrowers or debt instruments.

Among other factors confirming the high credit rating was the growth of the holding’s equity capital for the period from 31.03.2021 to 31.03.2022 by 3.74 times – up to USD 23.42 million, reduction of liabilities by 21.43% – to USD 45.31 million and, as a result, an increase in the ratio between equity and liabilities of KSG Agro by 40.84 percentage points to 51.70%.

“A significant increase in the level of KSG Agro’s own capital has a positive effect on the company’s solvency and is highly appreciated by the agency”, noted RA “Expert-Rating” experts.

In addition, in their opinion, it is important that the predominant share in the structure of long-term liabilities of KSG Agro as at 31.03.2022 was occupied by long-term loans, the volume of which in the analyzed period increased by 5.78% – to USD 25.97 million.

“The volume of sales of the company’s products in the analyzed period still showed growth. In particular, sales revenue for the first quarter of 2022 compared to the first quarter of 2021 increased by 0.54% and amounted to $3.54 million. At the same time, KSG Agro’s net profit at the end of the first quarter of 2022 increased by 2.45 times compared to the same period in 2021 to USD 1.84 million. A significant increase in the financial results of KSG Agro had a positive effect on the profitability of sales and profitability of the company’s assets, which in the analyzed period showed significant growth,” analysts of RA Expert Rating note.

Analysis of KSG Agro consolidated financial statements showed that EBITDA for the first quarter of 2022 compared to the first quarter of 2021 increased by 9.96% to USD 1.52 million, and the ratio between the amount of EBITDA for the first quarter of 2022 and the volume of loans as at 31.03.2022 increased compared to last year’s figure by 0.29 percentage points to 5.36%, which is positively assessed by RA Expert-Rating.

The agency notes that, since the beginning of the Russian invasion, there have been no hostilities in the immediate vicinity of the holding’s assets, KSG Agro S.A. has no customers from Russia, and the price dynamics of goods produced by the agricultural holding is favorable.

Besides, despite Russia’s military aggression against Ukraine, KSG Agro received from TASCombank in the first quarter USD 1.33 million of credit funds for the sowing campaign. Also, the company, even in the conditions of wartime, continued to increase the pace of pork production – i.e. KSG Agro in March increased sales of pigs by 3% compared to February 2022.

Thus, the agency has noted a significant increase in the level of equity coverage of liabilities, an increase in financial results, high performance indicators of the company, as well as an increase in the ratio between EBITDA and loans.