Fitch Affirms MHP S.A. at 'B'; Outlook Stable
2011-05-13 15:33:35
Fitch Ratings has affirmed Ukraine-based agricultural producer OJSC Myronivsky Hliboproduct's (MHP S.A.) Long-term foreign currency Issuer Default Rating (IDR) at 'B' with a Stable Outlook, the agency said in a statement May 12.
The rating is capped by Ukraine's Country Ceiling of 'B'.
Fitch has also affirmed the company's Long-term local currency IDR at 'B+' with a Stable Outlook. The senior unsecured rating applicable to MHP's guaranteed bonds has been affirmed at 'B' with a Recovery Rating of 'RR4'.
"The affirmation of MHP's Long-term local currency IDR reflects the company's steady operating performance and credit profile, which were both in line with expectations in 2010 overall. "The ratings also factor in the expectation of steady results and credit metrics through to 2012 as capex is deployed in the Vinnitsa project, which will increase the production capacity to 580,000 tonnes of chicken meat/year by 2015 from the current 360,000 tonnes. The first two phases, for a total cost of USD750m (gross capex before equipment financing), of which USD100m was spent in 2010, are on track to come on stream from 2013," reads the statement.
In 2010 MHP increased net income by 34.7% to USD 215.45 million with last year's expenses rising by 32.8% to USD 944.21 million.