According to the official information released by S&P rating agency, MHP rating was improved from “negative” to “stable”. Long-term credit rating of the company remained unchanged at “B-“ as well as the long-term rating of debt return in case of default. MHP rating review was the result of review of Ukraine’s credit rating review, on December 26, 2013, as the outlook for the country was also changes from “negative” to “stable”.

Agency stated that Ukraine is considered to be more reliable as a potential lender, which lowers risks of the country to implement foreign currency regulations, which would lead to MHP inability to pay on its liabilities in foreign currency. S&P also takes into account the fact that company’s assets are located in Ukraine, which indicates high level of dependency on commercial, financial and economic conditions within the country

Author: Alex Morgun, Financial Analyst, UkrAgroConsult