Standard&Poor's ("S&P"), the major international credit rating agency has today changed the outlook on the ratings of Agrokor ("Company") to "positive" from "stable".
This news confirms the trust that international investors and analysts have placed in the business model of Agrokor, the region’s largest company, and reflects its outstanding financial results even in a very challenging economic environment. The positive outlook provided is even more significant given the current market environment.
According to S&P, the positive change in ratings outlook reflects Agrokor's solid operating performance in 2011, leading to improvement of the Company's business risk profile, potential for moderate deleveraging, due to revised financial policy as well as ongoing improvements in the liquidity position on the back of covenant relaxation and ongoing short-term debt refinancing.
S&P further states that business risk profile is supported by Agrokor's entrenched market positions in its main business segments.
It is also expected that Agrokor will strengthen its liquidity position and debt maturity profile by issuing a new seven-year EUR300 million bond in addition to the already provided three-year EUR75 million club loan.
S&P concludes that the positive outlook reflects the possibility of an upgrade if Agrokor adheres to its revised financial policy and demonstrates moderate deleveraging.
Rating improvement information are availble on the Standard&Poor’s website
www.standardandpoors.com.