We have assigned a recovery rating of '4' to the proposed unsecured notes to be issued by Ukrainian agricultural producer Agroton Public Ltd. (Agroton; B-/Stable/--), reflecting our expectation of average (30%-50%) recovery for noteholders in the event of default. We believe that Agroton would reorganize in the event of a default. Our simulated default scenario contemplates a default in 2013, linked to liquidity problems as a result of a poor operating performance and an aggressive expansion strategy. The issuer of the proposed notes is a holding company. It is registered in Cyprus but its subsidiaries operate in Ukraine. The proposed notes are unsecured and unsubordinated. They benefit from a suretyship (the equivalent of a guarantee under Ukrainian law), provided by...
Companies mentioned in this report are: Agroton Public Ltd.
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