S&P upgrades Mriya Agro Holding's rating to 'B'
2011-04-06 16:20:30
Standard & Poor's Ratings Services has raised its long-term corporate credit rating on Ukrainian farming company Mriya Agro Holding PLC to 'B' from 'B-' and removed the rating from CreditWatch, where it had been placed with positive implications on November 2, 2010.
"The upgrade reflects the completion of Mriya's USD 250 million senior unsecured bond issue," said Standard & Poor's credit analyst Anton Geyze.
S&P notes that the outlook is stable. The issue rating on the USD 250 million senior secured bond maturing in 2016 was affirmed at 'B.' The '4' recovery rating on this bond is unchanged, indicating S&P's expectation of average (30%-50%) recovery for the bondholders in the event of a payment
"The stable outlook reflects our view that Mriya's investment needs will be financed by bond proceeds and operating cash flow for the next 18-24 months without investment weighing on its liquidity position," Geyze said.
Mriya is a family-owned company listed on the Frankfurt stock exchange. The Huta family, which dominates Mriya's board of directors, controls 80% of the shares in the company. Mriya is involved in related-party transactions with sugar factories also owned by the Huta family, to which it sells its sugar beet harvest.