S&P Global gives BB- credit rating to Agri Europe

The S&P Global Ratings Agency gave the preliminary long-term corporate credit rating BB- to the Serbian agricultural company Agri Europe Cyprus Ltd, under which MK Group operates, on Monday, January 29, 2018, the company announced.

– The agricultural activities of the Serbian company Agri Europe Cyprus Ltd, which produces sugar and farming cultures, generated an income of EUR 639 million in 2016. Agri Europe belongs to a Serbian group with diversified operations, including banking and hotel business – says the S&P Global Ratings report.

It is also pointed out that Agri Europe holds the dominant position in the local market, that it has a structure with low operating costs and high profitability compared to its regional competition.

– We project a positive free cash flow of EUR 60-80 million in 2018-2019. It is our opinion that the group will manage to reduce the adjusted debt to EBITDA ratio as defined by S&P. We give Agri Europe the preliminary corporate credit rating BB-.

The report also says that the stable outlook reflects the position that “the structure of lower operating costs, high profitability from the sugar business and controlled capital expenditures should support the generation of a free cash flow in 2018”.

– We are extremely pleased with the BB- rating by S&P Global, considering that, according to this agency, the rating of the Republic of Serbia is BB. Agri Europe, under which MK Group operates, is the only company in Serbia to have a credit rating for activities in the agrarian sector, and this is a great success and a confirmation that we are operating in line with European standards. We started our business activities over 30 years ago and we are now competitive on a global level – Miodrag Kostic, chairman of the Board of Directors of Agri Europe, commented on the results of the report.

Agri Europe Cyprus

MK Group d.o.o. Beograd

Agri Europe Cyprus Ltd

MK Group

S&P Global Ratings

credit rating Agri Europe

financial operations Agri Europe

Miodrag Kostic