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26.07.2007
Parex Asset Management Ukraine assigned a corporate governance rating of RCGuaB
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today
announced the first assignment in Ukraine of the corporate governance rating by a
specially-developed national scale. The rating of RCGuaB has been assigned to
Kiev-based
''Parex Asset Management Ukraine' Asset Management Company and Pension Funds
Administrator' ('Parex' or 'company').
The corporate governance rating reflects a company's management and control quality. The efficient management should secure company's funds against accidental or intentional misutilization, as well as its sound risk management, lay ground for achieving objectives stated in its business strategy. The primary goal of the corporate management is to provide the company with the sound management and with the overseeing company's activity aimed at surge in its value.
In the course of analysis Credit-Rating considered Parex's statements submitted to state-run regulatory bodies in accordance with the legislative requirements, the company's financial statements since its establishment to date, as well as other inside information furnished by the company.
The assessment of the company has been conducted in two major areas: the agency investigated coordination between company's management, owners, shareholders and other parties concerned, coupled with this Credit-Rating considered company's ownership structure, its adherence to owners' and other financially interested persons' rights, company's present management and supervisory structures as well as its publicity; the agency has also analyzed the legal, normative, informational and market environment the company operates in. In the framework of this analysis the agency considered factors affecting the quality of corporate governance.
The corporate governance rating of RCGuaB exhibits high level of the company's corporate governance. Risks associated with the corporate governance in the national market environment are insignificant. Interests of owners and other parties concerned may not be met in full, though.
Factors maintaining (+) and constraining (-) the rating by the groups of indicators:
Ownership structure and participants influence
(+) the concentration of proprietary rights (the only participant is Latvia-domiciled
'Parex Asset Management' JSC, which is incorporated with the 'Parex' group of companies)
renders impossible the owner's conflicts of interest, and simplifies the supervisory
procedures on the subsidiary;
(+) high level of company's support from the owner;
Owners rights and relations with the interested parties
(+) the owner's interests are met in full (the company's management is liable to the
owner, which comprehensively oversees company's activity;
(-) interests of the staff are not met in full since there is no collective agreement
envisaged by the company's statute;
Management and supervisory procedures
(+) the owner operates the supervisory system, which embraces all activities of
company's subdivisions, including both ongoing and preventive procedures;
(+) there has been implemented efficient control procedures on investment risks;
(-) the company does not have a formalized development strategy, with the business
processes and inside accountableness pattern being formalized insufficiently;
Disclosure policy and audit of activity
(+) the company discloses sufficient amount of information on ownership structure and
on funds being operated;
(+) apart from the external audit, an all-round examination of the company's activity is
conducted annually by internal audit department of Parex Bank;
(-) no information on company's statements, constitutive documents and on company's
management is available in Parex's web-site.
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
