Page 82 - UKRRptSept21

company’s creditors, including Eurobond holders. Ironically, prior to the RNBO decision, the situation in the company had significantly improved as it had resolved its liquidity issue (and got credit rating upgrades) and was demonstrating gradual improvements in cargo turnover and P&L. Therefore, the worst times for the company are over, so there is no need for such abrupt ‘anti-crisis measures’ right now. Therefore, the rapid changes in the company’s top management could be related to the company’s turning into an entity which will accumulate massive funds, to be sourced from raised rates and large state support (about UAH40bn in 2021-2023), which will be directed for new infrastructure projects and the procurement of rolling stock. Increased budgets always come along with increased corruption risks. Whether the top management changes are an attempt to fight corruption ahead of an increased budget, or an attempt to introduce managers of that increased budget who are more loyal to the government, only time will tell. At least the involvement of Ukraine’s western partners in the changes allows us to consider the first option,” an analyst at the Kyiv-based Concorde Capital brokerage said in a research note.
Fitch Ratings reported on August 13 that it had revised the Outlook on Ukrainian Railway's%age Long-Term Issuer Default Ratings to Positive from Stable, keeping the rating at B. The outlook revision for the company follows the corresponding revision of Ukraine’s sovereign outlook last week. On August 11, Fitch Ratings also upgraded the rating outlook to Positive (keeping the rating at B level) for another state-controlled company, Naftogaz%age for the same reasons. The agency can further amend Ukrainian Railways’ and Naftogaz’ rating or outlook in case it revises Ukraine’s sovereign rating. A negative rating action could follow a possible “dilution of the linkage” of the companies to the government or decrease of their standalone rating due to the weakening of their liquidity positions.
9.2.5 Retail corporate news
9.2.6 Agriculture corporate news
H&M coming to in Lviv. Swedish fashion retailer H&M plans to open its first store in Lviv in the Victoria Gardens shopping mall in autumn 2021. The H&M chain in Ukraine already has seven retail outlets: five in Kyiv and one each in Odesa and Kharkiv.
● Astarta Holding
Astarta revenue decreases 12%, EBITDA jumps 87% in 1H21. Ukraine’s leading sugar producer and farmer Astarta
percentage decreased its net revenue 12% y/y to €150.9mn in 1H21, according to its interim report published on August 11.
The decline was mostly caused by a 50% y/y decrease of revenue from the farming segment (to €27.4mn) as the company halved sales
82 UKRAINE Country Report September 2021 www.intellinews.com