Fitch lifts Avangardco

Fitch Ratings said it upgraded Avangardco Investments Public Ltd.'s long-term local-currency issuer default rating to B+ from B and the national long-term rating to AA+(ukr) from A+(ukr).

These ratings were removed from Rating Watch positive, where they were placed in March following the expectation of increased legal linkages with its parent company, UkrLandFarming plc, which has a local-currency issuer default rating of B+ and a foreign-currency issuer default rating of B.

The foreign-currency issuer default rating was affirmed at B, along with the senior unsecured rating for the $200 million 2015 notes at B with a recovery rating of RR4.

The outlook is stable.

These actions follow the recent placement of a total of $425 million of notes by UkrLandFarming.

Although Avangardco's bondholders do not benefit from a parent guarantee, this is mitigated by the stronger financial standing of Avangardco and a diminishing refinancing risk of its own eurobond due in October 2015, Fitch said.

The ratings are supported by the company's scale and leading market position and low leverage, the agency said.

Limited diversification beyond its two main product lines of eggs and egg products weighs negatively on Avangardco's business risk profile, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.