According to the official statement made Fitch Agency Rating we reported last week that Ukrlandfarming, the largest holding in Ukraine was planning to issue Eurobonds for the total worth of USD 500 M. Standards and Poor rating agency released its B- grade for the upcoming issue. Since this grade was lower than the one issued by Fitch, S&P had to come out with an official statement, explaining lower ratings level. According to the agency Ukrlandfarming was given B- rating due to the fact that holding operates geographically in the region with high country risks (political, economy, social, etc.) Another reason for lower rating is that company’s liquidity is considered lackluster considering its size. Further aggressive expansion of the company and poor corporate management may lead to even worse liquidity of the holding. Holding includes 111 grain storage facilities, 6 seeds production plants, 19 poultry producing farms, 9 chicken farms, 3 reproducers, 3 selection farms, 6 feed producing plants, 3 long-term storage facilities, egg and egg products production facility, 6 sugar plants, 19 meat production plants, 2 salt production plant as well as the largest land bank.

AgroInvest comment: We are certain of the fact that lower rating by S&P will not decrease amount of funds attracted by the holding since company has been operating successfully for several years with clear strategy and development plan.

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UkrAgroConsult