Fitch affirms Avangardco

Fitch Ratings said it affirmed Avangardco Investments Public Ltd.'s (Avangardco) long-term foreign- and local-currency issuer default ratings at B, along with its national long-term rating at A+(ukr), foreign-currency senior unsecured rating at B and recovery rating at RR4.

The outlook is stable.

The ratings reflect its average business risks and concentration on one product line, mitigated by partial vertical integration, Fitch said.

The single business concentration is mitigated by opportunities derived from increasing market shares in the Ukrainian eggs market from household production, despite the high penetration of egg consumption per capita and from export markets, the agency said.

The ratings continue to be limited by its narrow product portfolio and exposure to potentially high feed costs as Avangardco does not cultivate grain in any large amounts, Fitch added.

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