According to the results of 2023 RA "Expert-Rating" has updated the credit rating of KSG Agro agricultural holding at BBB grade
Based on the results of 2023, the Expert Rating agency has updated the credit rating of KSG Agro agricultural holding at BBB according to the international scale.
On June 10, 2024, despite the difficult situation in the Ukrainian agricultural sector as a
result of the full-scale war, the rating committee of RA Expert Rating updated the long-term credit rating of KSG Agro at BBB on the international scale. This rating indicates that the borrower or a particular debt instrument is characterized by high creditworthiness compared to other Ukrainian borrowers or debt instruments. The decision to update the rating is based on the analysis of KSG Agro's consolidated financial statements for 2023.
Analysts of "Expert-Rating" emphasize that in the structure of KSG Agro's liabilities as of 31.12.2023, the predominant share was occupied by short-term and long-term loans provided by the
main creditor "TASKOMBANK", which significantly reduced the interest rate on its loans and refinanced part of the loans by issuing several series of corporate bonds with lower interest and longer maturity.
Expert-Rating has taken into account that according to KSG Agro's five-year forecasts, the holding is expected to generate sufficient cash flow from operations to ensure total repayment of loans both in the long term and in the next twelve months, while unused credit capacity will be used to cover temporary cash gaps.
According to Sergiy Kasianov, Chairman of the Board of Directors of KSG Agro, the wartime challenges prompted the company and its partners to create a new "network" business
model, under which KSG Agro is engaged in the breeding and sale of piglets. The distribution of the production cycle helps to reduce security threats and ensure higher business margins.
"During 2023, the holding successfully conducted the sowing and harvesting campaigns and does not expect any significant disruptions in the production cycle in the near future. KSG Agro is currently forming a new development strategy to expand the Group's operations in the EU with a clear goal of placing most of the Group's assets and revenues in the EU in the next 3-5 years," the Expert Rating report says.
"We note an increase in sales volumes and a change in the structure of the Group's liabilities," summarize the experts of Expert Rating.
After the publication of the 2023 report and the first-quarter 2024 report, the company's shares rose by 18%
