Moldova-based trader and processor of sunflower seeds and grains Aragvi Holding International Ltd. (TransOil) has announced its intention to refinance its current debt with the issuance of a long-term senior unsecured Eurobond. Under the proposed capital structure, we expect that the group's S&P Global Ratings-fully-adjusted debt-to-EBITDA ratio will stand between 3.5x and 4.0x, depending on the final funding package, with EBITDA interest coverage of more than 2x in the coming two years. We are assigning our preliminary 'B-' ratings to TransOil and its proposed U.S. dollar-denominated senior unsecured Eurobond. The stable outlook on TransOil primarily reflects our view that the group will post good operating performance, continue toward deleveraging after the transaction, and maintain an interest coverage ratio of more
