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10.10.2007
Credit-Rating assigns Galaktika Insurance Company`s upcoming issue at uaBB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH25m 4-year issue of registered coupon bonds (B series) by Sevastopol-based Galaktika Insurance Company (`Issuer` or `company`) a long-term credit rating of uaBB+ (uaBB plus). In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 1H2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly 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 insurance payments have grown 1.3x to UAH38m in 1H2007 as compared to 2006 with the share of outgoing reinsurance remaining under 18 per cent; the reimbursement payments amount to 21 per cent.
- Issuer`s 1H2007 insurance reserves account for 43.7 per cent of its net stock (25.9 per cent as of year-beginning).
Factors constraining the credit rating
- Issuer`s detrimental performance in 2005-2006.
- Over a half of the company`s assets, namely 54.4 per cent as of July 1, 2007, is comprised of long-term investments in shares, with 80 per cent of these shares being not included in the listings.
- The company operates in the most risky and highly competitive segments of the insurance market.
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
