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11.12.2008
Credit-Rating affirms Oranta NJSIC at uaA
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it affirmed at uaA the long-term credit rating assigned to Oranta National Joint-Stock Insurance Company (`company`). The outlook on the rating is stable. In the course of analysis Credit-Rating considered company`s financial statements for 9M2008 and its other inside information.
An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
- Company`s leading positions in Ukraine`s insurance sector: the company is a leader in the segment of classic insurance services (having a 10% share by experts` estimates) and in retail segment (with its specific gravity of 9.4%); thereat the company operates a wide-spread branch network, which comprises 28 offices, 222 branches and 445 outlets located in all Ukraine`s regions, with this structure providing over 90% of company`s overall amount of net premiums.
- Significant rise in gross insurance premiums raised, specifically almost 1.5x to UAH710.2m over 9M2008 as compared with the similar year-earlier period.
- The company`s activities are independent upon reinsurance accompanied by improved quality of calculation of insurance provisions for securing necessary volumes of resource base.
Factors constraining the credit rating
- Aggravated environment in Ukraine`s financial sector, which weighs on company`s key figures.
- Rising specific gravity of operating expenditures in company`s insurance premiums earned, which decreases amount of incomes from the principal activity.
- The company operates in the riskiest and hotly competitive segments of insurance market, namely in motor segment, which is highly unprofitable.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.ua
