ACRA assigns EuroChem rating AA- (RU) with stable outlook

ACRA assigned MHK "EuroChem" rating AA- (RU) with "stable" forecast Analytical Credit Rating Agency (ACRA) assigned JSC "MHC "EuroChem" credit rating "AA- (RU)" with "stable" forecast, the agency said.

"AO credit rating "MHC "EuroChem" driven by a strong business profile, very strong geographic diversification, a very high level of corporate governance, a very large company size, high profitability and coverage, and strong liquidity. The level of the credit rating is restrained by the average assessments of market position, debt burden and cash flow", - indicated in ACRA materials.

JSC "MCC EuroChem" - main production unit of the group "EuroChem". Considering that the company accounts for about 70% of the assets and cash flow (and about 40% of the debt burden) of the group "EuroChem", when assessing the creditworthiness of the company, ACRA used the group's consolidated indicators.

According to ACRA experts, the group "EuroChem" is one of the four largest global fertilizer producers (in terms of revenue for 2019). It produces nitrogen, phosphate, potash and complex fertilizers, as well as operates in the segment of supplies of iron ore concentrate and organic synthesis products. The ultimate beneficiary of the company is Andrey Melnichenko, who owns 100% of the shares of the Cypriot company AIM Capital SE, which owns 90% of the shares of EuroChem Group AG.

There are 6 issues of the company's exchange-traded bonds worth 87 billion rubles in circulation.