Moscow, Russia – June 4 – Cherkizovo Group (MOEX: GCHE), Russia’s largest meat producer, announces that Expert RA has upgraded its credit rating to ruA+ with a stable outlook. The Company’s previous rating stood at ruA.
The rating upgrade comes on the back of Cherkizovo Group’s strong operating and financial performance in 2020 achieved despite the challenges of the pandemic. Expert RA noted that over the last year, the Company had reduced its total debt / EBITDA ratio from 3.4х to 2.8х. “We continue to see substantial debt refinancing opportunities for the Group, taking into account a high amount of its undrawn committed credit facilities and a registered exchange-traded bond program”, stated the rating agency in its press release.
Expert RA expects that following the short-term debt refinancing, Cherkizovo Group’s operating cash flow and cash on its balance sheet should well cover its capital expenditures and dividend payments.
“Expert RA becomes the second agency to upgrade our rating in the last four weeks, which testifies to the resilience of our business. This will give us a tailwind in securing better terms of long-term financing, including debt instruments, to fund our continued growth”, commented Ludmila Mikhaylova, CFO at Cherkizovo Group.
Earlier in May, Moody’s Investor Service also upgraded Cherkizovo Group’s credit rating from B1 to Ba3 with a stable outlook.