Credit-Rating assigns Financial Leasing Group`s bonds uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH100m 5-year registered coupon bonds (B series) issued by Kiev-based Financial Leasing Group LLC (`Issuer` or `company`) a long-term credit rating of uaB. The company provides services on operating and financial leasing of vehicles and construction equipment. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2005-2006 and 1H2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The Issuer has augmented its leasing operations; in fact 1H2007 saw UAH11.97m payments on leasing agreements, with UAH7.5m of it paid in 2Q, albeit full 2006 saw UAH6.47m of leasing payments. The share of net income from Issuer`s sales has advanced to 33.6 per cent from 2.3 per cent over the past 12 months, which witnesses Issuer`s focus on providing leasing services.
- Issuer`s EBITDA grew 2.88 percentage points to 7.79 per cent as of Jul.1, 2007 from 4.91 per cent as of Jul. 1, 2006.
- Rapid growth of national leasing market with such a tendency being expected to be further retained.
Factors constraining the credit rating
- The issue size of UAH100m exceeds 15.29x Issuer`s equity as of Jul.1, 2007; the annual coupon payments of UAH14m on B series bonds are commensurate with Issuer`s 2006 EBITDA of UAH14.17m.
- The Issuer does not have a formalized development strategy.
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