The S&P has upgraded the outlook to the rating of the Mriya agro-holding from Negative to Stable, the agency said. At the same time, the agency has affirmed B- long-term corporate credit rating on Mriya. The recovery rating on the company's debt issues remains unchanged, the report said. The outlook revision follows agency's similar action on Ukraine where Mriya's core assets are concentrated. The agency considers that the improved creditworthiness of the sovereign will reduce the likelihood of the government instructing export companies to convert their hard currencies, which could otherwise weigh on Mriya's dollar-denominated debt service. The rating on Mriya reflects S&P's assessment of the company's "vulnerable" business risk profile and "significant" financial risk profile, as its criteria define the terms. The S&P acknowledges that Mriya generates about 80% of its revenue through export, and consequently holds most of its cash offshore. This large amount of revenue denominated in dollars ensures debt service and is critical to agency's assessment of the company's liquidity as "adequate." The agency believes that improved creditworthiness of the sovereign reduces the risk of restrictions on the transfer of funds outside Ukraine and of stringent currency controls. Worth noting, the IFC has allocated USD 65mn to the Mriya. Respective agreement was signed on December 27 . Of the total loan amount, about USD 60mn will be a three-year revolving credit facility for the replenishment of floating funds; and USD 5mn will be a three-year loan aimed at the increase of energy efficiency of the company. At that, USD 60mn will replace the earlier provided three-year loan worth USD 35mn with the maturity date of March 2014 . In Jan-Sep, agricultural holding Mriya (MAYA GR, MRIYA) posted a 6% y/y increase in net revenue to USD 265mn . The company's EBITDA improved 19% y/y to USD 232mn , mainly due to 26% y/y growth in revaluation gains to USD 202mn . The company's finance costs grew by 60% y/y to USD 62mn . The company's net profit in Jan-Sep amounted to USD 138mn . Mriya's operating cash flow fell 3.4-fold y/y to USD 48mn in Jan-Sep, and the company attributed this decline to an increase in working capital by USD 156mn . The company's net debt amounted to USD 535mn as of end of Jan-Sep. In Q3, Mriya has reported a net profit of USD 23.601mn , having decreased net revenues by 14.15% y/y to USD 167.9mn . Mriya Agro Holding posted net profit of USD 174mn in 2012, up by 16.2% y/y, the company's unaudited financial report shows. In 2012, the company's its revenues grew by 29.68% y/y to USD 347.935mn . The company attributes the growth in revenues to favourable market conditions as well as increase in production volumes. Enterprises comprising the Mriya agricultural holding develop lands in Ternopil, Khmelnytskyi, Ivano-Frankivsk, and Chernivtsi regions. The company grows wheat, barley, rape, sugar beet, buckwheat, and potatoes, and other agricultural products.
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