The credit rating of Joint stock company “Siberian Agrarian Group” (hereinafter, Sibagro, the Company, or the Group) has been affirmed based on the high assessments of market position, business profile, and geography, as well as the medium level of corporate governance. The financial profile assessment reflects the very high profitability, high liquidity assessment, medium size of business of the Company, and its medium cash flow. The rating is constrained by the medium assessment of leverage and the low debt service indicator.
Sibagro is one of the largest vertically integrated pork producing holding companies in Russia. The Group also specializes in the production of poultry and eggs. As of the end of 2025, the Company produced 449,600 tons of pork in live weight. According to Agroinvestor magazine, in 2025, Sibagro held fourth place in the ranking of the largest feed producers in Russia with an indicator of 1,500,000 tons. The Group includes a selection and genetic center, production facilities (including a poultry farm), meat processing plants, feed mills, as well as its own crop areas for growing grain.
KEY ASSESSMENT FACTORS
High assessments of market position and geography. According to the National Union of Pig Breeders, Sibagro occupied third place in Russia in terms of pork production with a share of 7.6% as of the end of 2025. In addition, according to the National Union of Poultry Breeders, the Company was among the 25 largest poultry producers in Russia by the end of last year. In 2026, the Group plans to maintain its pork production in live weight at the level for 2025.
The Company’s production facilities are located in 10 regions of Central Russia, Siberia, the Ural area, and the country’s Far East. The remoteness of these sites from each other ensures sufficient distance between them, which reduces potential risks and the scale of negative consequences in the event of disease outbreaks. When combined with the highest degree of protection — level IV compartments — this ensures a high level of biological safety.
Products are sold in the Siberian, Ural, Far Eastern, and Central Federal Districts. In addition, Sibagro exported 33,400 tons of products in 2025, which was 30% more than in 2024. The main export destinations continue to be Belarus, Mongolia, and Kazakhstan.
The strong business profile assessment stems from the high level of vertical integration and the significant share of products with high added value coupled with moderate product diversification. The main area of Sibagro’s business is pig farming, which accounts for around 84% of the Group’s revenues. At the same time, the product line includes around 300 items: pork and chicken products, semi-finished products and sausages. The degree of the Company’s vertical integration is assessed by the Agency as high, since the Group is a full-cycle agricultural holding. Pig breeding is carried out at eight production sites, and breeding material is supplied from the Company’s selection and genetic center. The Group’s land bank includes 419,000 hectares, which enables it to independently grow grain and legume crops that are processed at its own feed mills. The Company fully covers its need for premixes and feed; self-sufficiency in grain was about 50% at the end of 2025. Production of products with high added value accounts for around 48%, which corresponds to a high assessment.
The medium assessment of corporate governance is due to the Group’s presence of strategic guidelines for business development and production indicators in the absence of a formal strategy. The assessment also takes into account the medium level of development of the corporate governance system. The Company has insurance coverage for its primary livestock (pigs and chickens). The Group structure is moderately complicated, which corresponds to the scale of its activities. Financial transparency is assessed as medium for the corporate sector as the Company prepares IFRS statements twice a year, but does not make them available to the public.
Medium size of the Company and very high profitability. The Group’s revenues in 2025 amounted to RUB 93.1 bln, which was 13% higher than the indicator recorded the year before. This was the result of product prices growing and pork production increasing by 2%. FFO before net interest payments and taxes amounted to RUB 22.7 bln in 2025, which corresponds to a medium assessment of business size as per ACRA’s methodology.
According to the Agency’s calculations, the weighted average FFO margin before net interest payments and taxes will be 22.7% for 2023–2028, which indicates that the Company has very high profitability. This indicator was positively influenced by the following factors: an increase in the share of deeply processed products and branded products in the total sales volume of the Group’s meat products.
Medium leverage and low debt service assessment. The weighted average ratio of total debt to FFO before net interest payments for 2023–2028 is projected by the Agency at 4.2x. The high size of debt and high qualitative assessment of leverage reflecting the balanced structure of the portfolio in terms of both the number of creditors and the repayment schedule, determine the overall assessment of the Leverage sub-factor as medium according to ACRA’s methodology.
Debt coverage continued to be low in 2025: the ratio of FFO before net interest payments to interest payments was 1.4x. The Agency estimates the weighted average for the period from 2023 to 2028 at 1.6x, which is due to a long period of high rates against the backdrop of the Company’s significant volume of credit obligations and a moderate share of liabilities attracted at subsidized interest rates.
High liquidity assessment coupled with a medium cash flow. The Group’s strong liquidity position is based on a weighted average current liquidity ratio of 2.7x and a significant amount of undrawn credit lines that cover debt repayments over the next 12 months. The assessment continues to be constrained by the fact that the Company only has external financing sources in the form of credit lines provided by banks. As of the end of 2025, the weighted average free cash flow (FCF) margin remained slightly negative (-3%). The Agency continues to expect that this indicator will grow amid an absence of significant dividend payments over the forecast period (from 2026 to 2028) and in the event that the capital expenditures to revenues ratio remains at no more than 6%, which is close to the 2025 result.
KEY ASSUMPTIONS
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Pork production volume in live weight as planned;
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Carrying out the investment program as per the announced deadlines and volumes;
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Access to external liquidity sources.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.
A positive rating action may be prompted by:
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Weighted average ratio of FFO before net interest payments to interest payments exceeding 2.5x;
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Weighted average ratio of total debt to FFO before net interest payments falling below 3.5x coupled with the weighted average FCF margin exceeding 3%.
A negative rating action may be prompted by:
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Weighted average ratio of total debt to FFO before net interest payments exceeding 5.0x;
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Weighted average ratio of FFO before net interest payments to interest payments falling below 1.0x;
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Deterioration of the liquidity position and the qualitative assessment of leverage;
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Materialization of biological or climate risks that can have a negative impact on the Company’s financial profile.
RATING COMPONENTS
Standalone creditworthiness assessment (SCA): a-.
REGULATORY DISCLOSURE
The credit rating has been assigned to Joint stock company “Siberian Agrarian Group” based on the following methodologies: the Methodology for Assigning Credit Ratings to Non-Financial Corporations under the National Scale for the Russian Federation to calculate the SCA and determine the credit rating and the credit rating outlook of Joint stock company “Siberian Agrarian Group” under the national scale for the Russian Federation and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities to ensure consistent and uniform application of ACRA’s methodologies, rating scales, models, and key rating assumptions.
The credit rating of Joint stock company “Siberian Agrarian Group” assigned under the national scale for the Russian Federation was published by ACRA for the first time on July 15, 2025.
The credit rating was last published on July 15, 2025.
The credit rating and its outlook are expected to be revised within one year.
The credit rating was assigned based on data provided by Joint stock company “Siberian Agrarian Group”, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS accounting (financial) statements of Joint stock company “Siberian Agrarian Group” as of December 31, 2025.
The credit rating is solicited and Joint stock company “Siberian Agrarian Group” participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to Joint stock company “Siberian Agrarian Group” during the year preceding the rating action.
No conflicts of interest were discovered in the course of credit rating assignment.
