Standard & Poor's Ratings Services revised its outlook to stable from negative on Ukrainian agribusiness company MHP S.A.

16.01.2014

Standard & Poor's Ratings Services revised its outlook to stable from negative on Ukrainian agribusiness company MHP S.A.

At the same time, they affirmed our 'B-' long term foreign and local currency corporate credit ratings on the company.
S&P also affirmed 'B-' issue rating on MHP's senior unsecured notes. The
recovery rating on these notes is unchanged at '3', indicating expectation
of meaningful (50%-70%) recovery in the event of a payment default.

The outlook revision and affirmation of the long-term rating on MHP, which has
all core assets in Ukraine, follows S&P similar rating action on Ukraine.
S&P believes that Ukraine's creditworthiness has improved, making foreign exchange
repatriation and currency restrictions less likely and, in turn, alleviating
pressure on the company's dollar-denominated debt service. We cap the
long-term rating on MHP at the level of the long-term rating on Ukraine and
the 'B-' transfer and convertibility (T&C) assessment on Ukraine.

S&P regards MHP's country risk exposure to Ukraine as a key risk factor. MHP's
revenues and earnings are concentrated in Ukraine, where all of its operating
assets are located. Over two-thirds of the company's sales are domestic.

S&P assessment of MHP's business risk incorporates the views of risk in the
global agribusiness and commodity food industry as "intermediate" and country
risk in Ukraine as "very high." MHP's business risk profile is supported,
however, by its leading position in poultry production in Ukraine, and its
track record of profitable growth.

Source and full version: http://www.standardandpoors.com/
 

Все новости