ACRA assigns A+(RU) to Cherkizovo Group

September 1, 2020

Moscow, Russia – August 31 – The Analytical Credit Rating Agency (ACRA) has assigned an A+(RU) credit rating to Cherkizovo Group (MOEX: GCHE), outlook Stable.

ACRA noted that the current rating was primarily due to Cherkizovo’s strong business profile and diversification above the industry average. In 2019, the key contributors to the Group’s revenue were the Poultry and Meat Processing segments. The Company's Pork, Grain and Feed divisions have been thriving as well, “which gives it a very high degree of vertical integration and considerably decreases the impact of price fluctuations on the main elements of the cost price,” said ACRA in its announcement.

The agency also cited Cherkizovo’s robust liquidity and profitability, which it believes may continue its steady growth throughout 2020–2022.

ACRA praised Cherkizovo’s strategy supporting the deep vertical integration of its business, growth of exports and stronger HoReCa sales. The Company keeps its leverage at an acceptable level despite its expansion mainly through M&A deals, it said. “The Group has a high level of corporate governance: three of the seven members of the Board of Directors are independent, and the Board of Directors has committees for audit, personnel and remuneration, and investment and strategic planning,” commented the agency.

“ACRA's rating proves that Cherkizovo is moving forward at a brisk rate, while its strategy and vertically integrated business model ensure financial stability even in a challenging macroeconomic environment,” said Ludmila Mikhailova, CFO at Cherkizovo Group.