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24.07.2007
Rating to bond issue by VUSO Insurance Company upgraded to uaBBB-
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today upgraded to uaBBB- (uaBBB minus) from uaBB the long-term credit rating assigned to UAH5m 3-year issue of registered coupon bonds (1-A series) by VUSO Insurance Company CJSC (Issuer or company). To revise the rating Credit-Rating considered Issuer's financial statement for 1Q2007 as well as other inside information furnished by the company.
A credit rating of uaBBB is an investment grade rating, indicating an ADEQUATE CAPACITY of an obligor 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 higher investment grade ratings. The plus (+) or minus (-) modifier denotes ratings relative status within major categories.
Factors maintaining the credit rating:
- The company's insurance fees have doubled in 1Q2007 reaching UAH14.6m as compared to UAH7.9m in 1Q2006 coupled with 2x increase to 12,790 in the number of insurance agreements concluded;
- Issuer's 1Q2007 net profit made up UAH5.1m, or 54% of the overall 2006 net profit exceeding the company's debt issued.
Factors constraining the credit rating:
- High specific weight of 10 biggest insurance compensations in the overall volume of insurance compensations paid by the company in 1Q2007 amounts to 26.8% compared to 12.8% in 2006;
- The Issuer operates in the riskiest and high-competitive niches of insurance market, namely the automobile one.
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
