Mriya credit rating is upgraded to B by Fitch

Обзоры по компаниям и отраслям 23.01.2013 Fitch Ratings upgraded Mriya Agroholding’s (MRIYA) notes to “B” from “B-,” the agency reported on Jan. 22. Fitch explained its upgrade by citing consistent growth and profitability with expectations for moderating leverage. In particular, the agency assumed a decrease in Mriya’s “FFO adjusted net leverage” to 2.0x by 2015 from 2.3x in 2012 when assigning the higher rating. In addition, Fitch believes Mryia has low exposure to currency risk. One of the reasons for possible deleveraging is Mriya’s shift from land bank expansion into infrastructure investment and improving operating efficiency, Fitch reported, though the agency did not explain why such a shift could lead to decreased leverage. Among the constraining factors, Fitch cited related party transactions in Mriya’s sugar business. Alexander Paraschiy: Indeed Mriya posted an exceptionally high operating cash flow in its 9M12 financials (USD 165 mln, which exceeded FY11 figures by 1.3x), as well as showed a significant decline in investing cash outflow. Both factors served towards improving its leverage, which should be rewarded by debt holders. Unlike Fitch Ratings, we are viewing more cautiously Mriya’s efforts to invest in low-return storage and related businesses as this looks nearly destructive for the company’s equity value.