Expert RA affirms Cherkizovo Group’s rating at ruA+

Moscow, Russia – June 3 – Cherkizovo Group (MOEX: GCHE), Russia’s largest meat producer, announces that Expert RA has affirmed its credit rating at ruA+ and revised its outlook from stable to positive.

The outlook was revised on the expectation that the oil extraction plant to be opened in the Lipetsk region in 2022 will boost the Company’s self-sufficiency in raw materials, said Expert RA. According to the agency, the new facility is set to have a positive effect on the level of vertical integration within the Group and help minimize its FX risks thanks to a lower volume of raw materials paid for in foreign currency.

Expert RA also pointed out substantial debt refinancing opportunities for Cherkizovo, citing a high amount of undrawn committed credit facilities and exchange-traded bond and government support programs. Subsidized loans represent around 60% of the Company’s debt portfolio. With the opportunities to refinance its short-term borrowings taken into account, the Group is expected to have sufficient cash to cover its financial and investment expenses, said the agency.