Expert RA upgrades Cherkizovo Group’s rating to ruAA-

Cherkizovo Group (MOEX: GCHE), Russia’s largest meat producer, announces that Expert RA has upgraded its credit rating to ruAA- and revised its outlook from positive to stable.

The upgrade was due to the expected increase of Cherkizovo Group’s self-sufficiency in raw materials following the launch of an oil extraction plant in the Lipetsk Region in 2022. “The expansion of the Company's own soybean processing capacities will boost Cherkizovo’s vertical integration, improve business margins and help minimize FX risks by reducing the volume of raw materials paid for in foreign currencies,” states Expert RA’s press release..

The rating agency believes that the Company will demonstrate strong financial results and maintain its rating in 2023 on the back of chicken and pork production growth driven by the integration of assets acquired in 2022. Another factor supporting the rating upgrade is a large share of high value-added products in the Company’s portfolio, said Expert RA representative.

The agency evaluates Cherkizovo’s leverage and liquidity as moderately positive.