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02.10.2007
Credit-Rating rates Euro Leasing`s upcoming issue at uaBBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH100m 4-year issue of registered coupon bonds (B series) by Kiev-based Euro Leasing LLC (`Issuer` or `company`) a long-term credit rating of uaBBB- (uaBBB minus). The company`s principal activity is financial services on sale of Volkswagen, Audi, Seat, Skoda cars. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2006 and 1H2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The Issuer enjoys a surety from Atoll Holding CJSC, which is the managing company of
the same name group of companies engaged in car manufacturing and sale. As of
Jan. 1, 2007 the group`s consolidated assets (by International Accounting Standards) amounted to UAH813.2m, with the profits generated at UAH118.4m. - The overdue leasing payments do not exceed 1 per cent of the Issuer`s leasing portfolio.
- Rapid growth of the national leasing market with such a tendency expected to be further retained.
Factors constraining the credit rating
- Issuer`s performance within the group imposes risks of redistribution of cash flows neglecting Issuer`s interests and makes it vulnerable to risks of the whole group.
- Issuer`s ambitious expansion plans, which implementation is contingent upon successful development of Atoll Holding group.
- Issuer`s dependency upon certain customers, in fact over 48 per cent of Issuer`s liabilities account for 10 biggest customers as of Jul. 1, 2007.
Information on all 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
