S&P improves Agrokor's rating outlook
Nov 11, 2010
International credit rating agency Standard & Poor's announced today that they improved Agrokor's rating outlook from "negative" to "stable". The news is a confirmation of confidence that the international investors and analysts have in Agrokor, whose performance shows outstanding financial results even in very challenging economic environment as well as a confirmation of the stability of Agrokor's business model. Standard and poor’s states that Agrokor has managed to significantly improve its debt maturity profile and its liquidity position through strengthening of the balance sheet in the form of EUR 400 mn eurobond issue maturing in 2016 and the recent signing of EUR 352 mn syndicated loan facility. The balance sheet restructuring resulted in the reduction of short term debt to less than 30% of the total indebtedness. Furthermore, the company increased its operating profitability and presented a strong cash generative capacity which is a proof of resilience of its business model to external shocks. Standard and Poor’s emphasized that Agrokor enjoys a strong support from the international banking system. The business profile has been additionally improved by entrenched market positions in most of its businesses. The information about the improvement of rating outlook can be found on the web pages of Standard and Poor's:www.standardandpoors.com.