Fitch assigns B rating to MHP
21 June 2019
Fitch Ratings has affirmed MHP's Long-Term Foreign-Currency Issuer Default Rating in local and foreign currency at B level with a stable outlook and potential increase to B+ in local currency. The key factors behind such favorable forecast are business expansion and diversification, namely the construction of the second stage of the Vinnytsia poultry farm and purchase of Slovenian Perutnina Ptuj Group.
Fitch estimates the share of Perutnina Ptuj in MHP’s EBITDA at 7% in 2019. Accordingly, 57% of MHP’s EBITDA will come from exports or from activities abroad. Fitch expects MHP’s revenue to increase 0.6% up to 2022 as compared to the 2018 result of $ 1,56 billion. At the same time, EBITDA margin is expected to rise from 2,4% to 25,8% by 2022.