18 November 2016
Following Ukrainian sovereign rating increase, Fitch upgraded ratings of MHP and Kernel from CCC to B-. Along with it ratings of both entities remain constrained by still low rating of Ukraine.
Basing on Fitch opinion business models of both companies are robust, but if it has “Stable” outlook for Kernel, outlook for MHP is “Negative”. Rating agency notes significant general exposure of largest Ukrainin poultry producer on domestic economy (about 50% of total sales are still realized domestically), so that high FX risk. Also agency mentions weak liquidity position of the company, which is, on our opinion, point for additional discussion, as main part of MHP debt matures in Y2020.