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24.12.2010
Credit-Rating takes rating actions on Illichivska Insurance Company
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaBBB+ (uaBBB plus) with stable outlook to Kiev-based Illichivska Insurance Company SLC (‘company’ or ‘insurer’). Credit-Rating has also assigned to the company its insurer strength rating of uaAin. In the course of the rating procedure Credit-Rating considered company’s financial statements for 2006-2009 and 9M2010, and its other inside information.
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).
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
The strength of insurance companies bearing uaAins rating is high, with their capacity, reputation and loyalty to customers being higher than those of Ukrainian companies assigned lower ratings, though they are more vulnerable to impact of adverse commercial, financial and economic factors than the companies bearing uaA+ins rating. The probability of failure to timely make insurance payments/repay cumulated insurance amounts is lower than those in insurance companies with lower ratings.
Factors maintaining the credit rating
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Rising amount of attracted insurance premiums in the crisis environment.
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Company’s sufficient diversification of assets that represent insurance reserves.
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High liquidity and solvency ratios.
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Acceptable diversification of the company’s bank deposits.
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No debt burden.
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Company’s information openness and transparency.
Factors constraining the credit rating
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Loss-generating performance of its core business, due to company’s short operating period and absence of public confidence in Ukraine in life insurance.
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High dependency upon transactions with employees of the companies which are associated with the insurer’s shareholder.
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Large amount of funds invested in securities combined with dependency of the company’s performance efficiency indicators upon effect from transactions with securities.
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Impact of adverse factors on the financial market, which may weigh on the company’s figures.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in THOMSON REUTERS and BLOOMBERG information systems.
For more information, please contact:
Department of
Information and Communications
Sergey Rozumyak +38044490 25
50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
