Ekosem-Agrar GmbH: Creditreform confirms CCC (stable) rating

Walldorf, 5 August 2016 – Creditreform Rating has confirmed the CCC rating with stable outlook of Ekosem-Agrar GmbH, the German holding company of Russian milk producer Ekoniva Group. Creditreform highlighted the business model, the market leading position and the operating performance of the company as well as the low cyclicality of the sector. According to the rating analysts, these positive aspects still contrast, however, with the Russian country risk and with risks associated with the company’s leverage and the loans granted to related parties (primarily Ekotechnika Holding GmbH). While Creditreform is of the opinion that the extension of the maturities of the two corporate bonds has improved the capital structure, the company’s management feels that this is still not adequately reflected in the rating. The same applies to the Russian country risk, which has improved notably over the past months. This is also confirmed by the latest forecasts published by international economic experts.