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Ekosem-Agrar GmbH: Company rating lifted to CCC (stable)

DGAP-News: Ekosem-Agrar GmbH / Key word(s): Rating
Ekosem-Agrar GmbH: Company rating lifted to CCC (stable)

24.05.2016 / 16:32
The issuer is solely responsible for the content of this announcement.

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Ekosem-Agrar: Company rating lifted to CCC (stable)

Walldorf, 24 May 2016 - Creditreform Rating has upgraded the company rating
of Ekosem-Agrar GmbH, the German holding company of Russian milk producer
Ekoniva Group, from D to CCC (stable). While noting that the company
remains on a profitable growth course, the analysts also pointed out the
risks resulting from its high leverage and its lending to related
companies, the latter aspect primarily referring to a loan bearing market-
rate interest granted to associated company Ekotechnika Holding GmbH.

Management believes that the upgrade by one rating grade fails to reflect
the company's materially enhanced balance sheet following the 4-year
refinancing of the two corporate bonds while at the same time
insufficiently recognising the improvement in the Russian country risk in
light of the more stable political environment and the encouraging economic
indicators (oil price, currency). As the group continues its growth
strategy on the operational level, its daily milk output reached the 650
ton mark two days ago. On the crop producing side of the business, copious
rainfalls in spring in the Chernozem region suggest that this year will see
a high-yield harvest.

Ekosem-Agrar will publish its preliminary figures for the first quarter of
2016 in early June, followed by the presentation of its audited 2015
consolidated financial statements in the second half of June.


About Ekosem-Agrar
Ekosem-Agrar GmbH Walldorf, Germany is the German holding company in the
Ekoniva Group, one of the largest Russian agricultural companies. With over
59,800 head of cattle(thereof more than 28,000 dairy cows) and an average
milk production of around 635 tons per day, the company is the largest milk
producer in the country. The group has more than 196,100 hectares of
farmland and is also one of the leading producers of seed in Russia. The
founder and managing director of the company is Stefan Dürr. He has been
active in Russian agriculture since the 1980s and has played a decisive
role in its modernization over the past two decades. In 2009, he was
awarded the German Federal Cross of Merit for his contributions to the
agricultural policy dialog between Germany and Russia. The corporate group
has about 3,650 employees at six locations in Russia and achieved a total
output of EUR 156.5 million and an EBIT of EUR 44.5 million in fiscal year
2014. For further information visit: www.ekosem-agrar.de


Contact
Irina Schwachhofer // Ekosem-Agrar GmbH // Johann-Jakob-Astor-Str. 49 //
69190 Walldorf // T: [phone] // E:
[e-mail] // www.ekosem-agrar.de


Media / Investor Relations
Fabian Kirchmann // IR.on AG // T: [phone] // E:
[e-mail]


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24.05.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements,
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Language: English
Company: Ekosem-Agrar GmbH
Johann-Jakob-Astor-Str. 49
69190 Walldorf
Germany
Phone: [phone]
Fax: [phone]
E-mail: [e-mail]
Internet: www.ekosem-agrar.de
ISIN: DE000A1MLSJ1, DE000A1R0RZ5
WKN: A1MLSJ, A1R0RZ
Listed: Regulated Unofficial Market in Berlin, Dusseldorf,
Hamburg, Hanover, Stuttgart (bondm); Open Market in
Frankfurt


End of News DGAP News Service
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466277 24.05.2016