Moody’s, the credit rating agency, announced on Thursday that it has changed the outlook for the Croatian conglomerate Agrokor’s future rating from ‘positive’ to ‘stable’, which means that, unlike the period before the change, they no longer expect an imminent upgrade in the rating.
The change in outlook is a result of «limited satisfaction» with Agrokor’s liquidity in light of the lack of maneuvering space due to financial obligations arising from issued bonds and received loans, they state at Moody’s. The agency acknowledges the strong growth of Agrokor’s financial indicators in the first half of this year, the consolidation of the company as a regional market leader, and the successful turnaround of recent acquisitions, as well as significant growth opportunities for the company in the Southeast European region što, according to Moody’s, could lead to a higher rating.
However, they also note that the improvement in Agrokor’s financial situation, on which the earlier ‘positive’ outlook was based, has not materialized as expected, primarily due to a higher level of debt and weaker cash flow that would accompany strong growth. Therefore, the lack of maneuvering space for Agrokor due to current obligations, and the risk that the company could breach some of the commitments it has made, currently prevent a «positive rating development».
