S&P downgrades Mriya Agro

Standard & Poor's said it lowered to B- from B the long-term corporate credit rating on Mriya Agro Holding plc.

The outlook is negative.

The downgrade follows the lowering of the sovereign credit rating and transfer and convertibility assessment on Ukraine to B- as Mriya's core assets are concentrated in Ukraine, S&P said.

The revised assessment constrains the rating on Mriya because of the likelihood of increased restrictions on foreign-currency exchange and repatriation outside Ukraine and, more generally, negative sovereign interaction, the agency said.

The ratings continue to reflect the company's weak business risk and aggressive financial risk profiles, S&P said.

The agency said it acknowledges that Mriya generates about 80% of its revenue through export, and consequently has most of its cash on hand offshore.

S&P said it thinks that weakening sovereign credit quality could expose Mriya to several risks, including potential restrictions on transfer of funds outside Ukraine, more stringent currency controls and increased fiscal pressure.

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