| Abstract [eng] |
VILNIUS UNIVERSITY BUSINESS SCHOOL SUSTAINABLE CORPORATE FINANCE AND INVESTMENTS VALDEMAR VERBICKI CORPORATE CREDIT RATING ASSESSMENT OF AUGA GROUP Supervisor – Doc. Dr. Antanas Laurinavičius Master’s thesis was prepared in Vilnius, in 2024 Total number of pages – 73 p. Total number of tables – 16. Total number of figures – 12. Total number of references – 84. This research investigates the role of credit ratings in financial markets, focusing on smaller or geographically centralized companies. It applies Moody’s Investors Service credit rating assessment methodologies to Auga Group which is listed on the Nasdaq Baltic Stock, providing a unique perspective on Baltic companies and their global positioning. The study emphasizes the need for financial analysis of smaller-size companies to guide policymakers, create business development opportunities, and attract investors. This research offers a novel perspective, as credit rating assessments for smaller corporations have not been extensively analyzed. The objective is to provide a comprehensive evaluation of Auga Group’s performance using credit rating assessment methodologies and techniques, which incorporate various qualitative and quantitative factors. The study concludes that agricultural company “Auga Group” falls within the lower end of the speculative ratings group, reflecting its increased vulnerability to default. It is found that Auga Group’s financial performance aligns with industry standards for smaller-scale companies. However, its qualitative performance in terms of market share and earnings stability is lower. It is suggested that Auga Group implements a debt management strategy and maintains its current product profile and exporting strategy. The research also recommends policymakers provide financial and regulatory support to corporations practicing environmentally-friendly organic agriculture. Finally, the research proposes that future studies should incorporate more qualitative factors in corporate credit rating assessments. |
