S&P rates TransOil eurobond B-

S&P said it assigned B- ratings to Aragvi Holding International (TransOil).

The agency also assigned a B- rating to the $300 million dollar-denominated senior secured eurobond due in 2024 issued by Aragvi Finance International DAC.

The company completed the issuance of a five-year senior secured eurobond to refinance its current debt, S&P explained.

Under this new capital structure, the agency said it expects the group's fully adjusted debt-to-EBITDA ratio will be 3x.

The ratings reflect the company's high exposure to a small geographic area for the sourcing of agriculture commodities, which the industry's strong barriers to entry and the group's unique asset base somewhat mitigate, S&P said.

The stable outlook primarily reflects a view that TransOil will post good operating performance, continue de-leveraging after the transaction and maintain an EBITDA interest coverage ratio of more than 2x in the next 12 months, the agency said.

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