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 kept outlook stable. Previously, the Company had a credit rating of ruAA-.

Expert RA noted that Cherkizovo Group’s credit rating is attributable to the Company’s strong market and competitive positions. The Agency also indicated a robust liquidity assessment and profitability of the Group’s business, as well as low corporate risks. Expert RA explained the credit rating upgrade by the growth of the Company’s operating and financial performance against the background of increased production capacity, as well as the successful integration of the assets acquired during 2022. This reduced the Group’s leverage in 2023.

“The rating is supported by a significant share of high added-value products, as well as vertically integrated business — from grain farming and storage, feed production, livestock breeding and slaughtering to the manufacturing of finished meat products and their distribution in most of the Russian regions,” says Expert RA.

“Amid inflationary pressures and growing costs, Cherkizovo Group maintains resilience, delivering strong financial and operational results and investing heavily in business development. We are delighted that Expert RA has recognized our endeavors, resulting in an upgraded credit rating for Cherkizovo. We are positive that as the Company expands and reinforces its vertically integrated structure, we will continue to effectively navigate challenges and stay true to our mission — delivering top-quality, reasonably priced meat products to our consumers,” commented Ludmila Mikhailova, CFO at Cherkizovo Group.