ACRA takes positive outlook on Cherkizovo’s credit rating

Moscow, Russia – August 24 – Cherkizovo Group (MOEX: GCHE), Russia's largest meat producer, announces that the Analytical Credit Rating Agency (ACRA) has affirmed the Company’s A+(RU) credit rating and revised its outlook from stable to positive.

ACRA cited Cherkizovo’s commissioning of the oil extraction plant (OEP) as the basis for the outlook upgrade. The Agency believes the plant will improve the Group’s vertical integration and profitability. On top of that, it will considerably decrease the impact of price fluctuations on the main cost items.

ACRA noted that the current A+(RU) rating is based on Cherkizovo’s robust business profile that is undergirded by strong vertical integration and well-diversified product offering. “Cherkizovo Group’s financial profile is shaped by high returns and high liquidity, with the leverage kept at a comfortable medium,” says the Agency’s press release.