The Board of KSG Agro S.A. headquartered in Luxembourg ("the Issuer")hereby informs thatJune 8, 2021the rating committee of the Agency "Expert-Rating"madea decisionto assign a credit rating to KSG Agro S.A. at the levelBBBaccording to the agency'sinternationalscale.The borrower or the separate debt instrument with therating uaBBB is characterized by sufficient credit status in comparisonwith other Ukrainian borrowers or debt instruments. Credit status leveldepends upon the influence of adverse commercial, financial and economicconditionsAccordingto the results of the rating research, the following main conclusionscan be drawn:1.KSG Agro S.A. is a vertically integrated agricultural holding, whichincludes 27 companies operating mainly in Ukraine. The holding producesagricultural products for both domestic consumption and export. KSG AgroS.A. According to the results of 2020 year the Holding received 48.35%of itsrevenuesfrom pig farming, 39.29% - from crop production, 12.36% - from otheractivities. In 2011, KSG Agro S.A. became one of the first issuers withbusiness in Ukraine, which successfully performed public offering of itsshares on the Warsaw Stock Exchange. As of the beginning of April 2021,35.17% of the shares of KSG Agro S.A. were in free circulation andquoted on the WSE.2.KSG Agro S.A. used short-term and long-term loans in its activities. Inparticular, as of March 31, 2021, the share of loans in the liabilitiesof KSG Agro S.A. amounted to 47.70%, namely: short-term loans - 5.12%,long-term ones - 42.58%. As of the beginning of 2021, the shareholders'equity of KSG Agro S.A. covered 44.16% of bank loans and 19.64% of thetotal volume of loans from banks and the parent company. In 2020-2021the management of the Holding took measures aimed to improve its credithistory by fully repaying and restructuring the overdue debts on bankloans, as well as reduced the impact of currency risk on thecreditworthiness of KSG Agro S.A., by changing the lending currency fromthe US dollar to the functional currency, i.e. the currency ofoperations of subsidiaries.3.The analysis of key balance sheet indicators and financial results ofKSG Agro S.A. for 2019-2020 and for the first quarter of 2021 shows theprofitable activity of the Company, the increase in the level of theratio between shareholders' equity and liabilities, and a significantincrease in the ratio between EBITDA and liabilities of the Company. Inparticular, according to the results of the 2020 year compared to the2019 year, the ratio between EBITDA and total liabilities of the Companygrew by 8.04 p.p. up to 11.35%, the ratio between EBITDA and the totalamount of loans received by KSG Agro S.A. (including a loan from theparent company) grew by 16.70 p.p. up to 23.94%, and the ratio betweenEBITDA and bank loans increased by 34.81 p.p. up to 54.28%. CurrentEBITDA level of KSG Agro S.A. covers a significant share of theCompany's interest-bearing liabilities, and according to the results of2020 year it more than in 4 times exceeds the cost of interest on loans,and more than in three times exceeds the total financial costs of theHolding (which also include the cost of renting land). This means thatthe Company is able to generate a significant amount of revenue that canbe aimed atfinancing continuousactivity and debt service..4.The fact of the availability of listing of KSG Agro S.A. shares in themain market of the Warsaw Stock Exchange, under certain conditions,creates opportunities for the Company to access a conditionally freesource of financing. In particular, the increase in investors' interestin KSG Agro S.A. shares, which results in an increase in the liquidityand share price of the Company, improves its ability to increase theshareholders' equity by placing shares of the new issue. In particular,for the period from January 1, 2020 to May 17, 2021, the share price ofKSG Agro S.Agrew 2.83times:from PLN 1.2 to PLN 3.40. At the same time, the higher the share priceon the stock exchange, the better the Company's chances of raisingadditional capital through SPO and even replacing part of the borrowedresources with its own funds. As well, the availability of listing ofKSG Agro S.A. shares on the WSE contributes to the improvement ofcorporate governance practices in the Holding. 5. As of the beginning of2021 year, the agroholding KSG Agro S.A. did not issue other debtsecurities, except for short-term promissory notes (as of December 31,2020, the amount of debt on issued promissory notes was estimated at USD2.349 million). The Agency notes that if the Company issues other debtsecurities, including bonds, its rating may be revised depending on theterms of issue. 6. The parent company of KSG Agro S.A. is OLBISInvestments LTD S.A. (Panama), which owns 64.62% of shares of theHolding, and the ultimate controlling party is Sergyi Kasyanov (Chairmanof the Board of Directors). Based on the above, the level of externalsupport of KSG Agro S.A. the Agency considers it uncertain that istraditional for companies whose beneficial owners are individuals.Thefull substantiation of the rating assessment of RA "Expert-Rating" iscontained in the Rating Report:http://www.expert-rating.com/data/upload/INDIVIDUAL_ratings/ENG_KSG_Agro_Report_1q_2021.pdf