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01.04.2010
Credit-Rating affirms BROKBUSINESS Insurance Company CJSC’s rating
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it affirmed at uaBBB- (uaBBB minus) the long-term credit rating assigned to Kiev-based BROKBUSINESS Insurance Company CJSC (‘company’). The outlook on the rating has been changed to positive from stable.
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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
The change in the rating outlook to positive is in response to positive shifts in fundamental indicators of the company’s core business.
Factors maintaining the credit rating
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The company’s cooperation with legal entities united under BROKBUSINESS brand, which contributes to company’s expansion, maintenance of its clientele and the business.
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A rapid rise in the volume of payments raised by the company and the company’s entering the top-20 of Ukraine’s biggest insurers by premiums raised (in 9M2009) under maintained company’s branch network all over Ukraine and relatively balanced issuer’s portfolio.
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Company’s low debt burden.
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High specific gravity of cash in both the assets representing insurance reserves and the general assets.
Factors constraining the credit rating
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Necessity in increase of the company’s authorized stock given the structure of the equity.
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Risks of redistribution of the company’s resources with no consideration to priorities in insurance business, which is under impact of the company’s association with the legal entities united under BROKBUISNESS brand.
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Impact of external factors on the financial market and subsiding business activities in certain sectors which may weigh on the company’s key figures.
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 +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
