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20.07.2007
Rating to bond issue by Universalna Insurance Company upgraded to uaA-
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today upgraded to uaA- (uaA minus) from uaBBB the long term credit rating assigned to UAH30m 3-year issue of registered coupon bonds by Lviv-based Universalna Insurance Company OJSC (Issuer or company). To revise the rating the agency, considered Issuer's financial statement for 1Q2007 as well as other inside information furnished by the company.
A credit rating of uaA is an investment grade rating, indicating a STRONG CAPACITY to pay both interest and principal on the given debt liability in the Ukrainian financial market environment. This rating indicates a level of creditworthiness that is more susceptible to adverse changes in commercial, financial and economic conditions than debt obligations with uaAAA and uaAA ratings. The plus (+) or minus (-) modifier denotes ratings relative status within major categories.
Factors maintaining the credit rating:
- Issuer's stock capital rose 1.67x to UAH100m, with 40% of it being public-offered;
- The Issuer has developed its sales through banking outlets, in fact the payments gained via the banks advanced to UAH11m in 1Q2007, or 22% of overall payments compared to UAH4m for the similar year-earlier period;
- The specific gravity of payments from the 10 biggest insured amounted to 3.86% of the gross Issuer's insurance fees, which shows companys low dependency upon key clients.
Factors constraining the credit rating:
- Issuer's rapid growth and activity in the past few years entails its unstable financial performance;
- The Issuer operates in the most detrimental and high-competitive niches of insurance market.
Information on all the credit ratings assigned in accordance with the Ukrainian National Scale may be found in REUTERS, BLOOMBERG and FTN MONITOR Information Systems.
For further information, please contact:
Information and Analytic Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
