S&P affirms Agrokor

Standard & Poor's said it affirmed the B long-term corporate credit and senior secured debt ratings on Agrokor dd. and removed them from CreditWatch where they were placed with negative implications on Nov. 12.

The outlook is negative.

The affirmation follows the company's announcement of the failed joint bid with Blackstone Group LP to buy 51% of Migros Turk TAS. The negative outlook reflects escalating investment trends stemming from aggressive expansion in the context of a slowing macroeconomic environment, the agency said.

Ratings are constrained by a highly leveraged financial profile, due to sustained debt-financed acquisitions and organic growth, and exposure to developing economies in the western Balkans, S&P said.

Agrokor's business profile remains supported by leading market positions in the Croatian retail segment and in several key food segments, the agency said.

In the 12 months to Sept. 30, the issuer's debt-to-EBITDA ratio was 5 times.

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