15 September 2016
Both local and foreign currency default ratings have been affirmed at CCC, constrained by Ukraine’s sovereign rating of CCC. Fitch notes relatively weak liquidity position of the company, significant general exposure on Ukrainian economy (more than 50% of total sales are still realized domestically), so that high FX risk. It is also specially noted that MHP financial policy is moderately aggressive, as the company increased its dividends paid in this year, despite all above-mentioned risks in its activity. On positive side for MHP credit profile, basing on Fitch opinion is robust business model and growing export. Expected EBITDA for current year is USD 370M with further decline to USD 350M in Y2017.