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01.06.2005
Financial strength rating of Credo-Classic insurance company affirmed at uaAA
June 1, 2005 – independent rating agency Credit-Rating announced its confirmation of the long term “uaAA” rating on financial stability of Closed Joint Stock Insurance Company “Kredo-Klassik” in accordance with the Ukrainian national scale. The forecast of the rating is “under development”. On the basis of the detailed accounting records of the insurers Q1 2005 results and other available information, the rating agency confirmed the financial stability of the company.
The “uaAA” financial stability ratings is evidence of VERY HIGH capability of the insurance company to fulfill its indebtedness obligations under the Ukrainian financial market conditions and it to do not differ essentially with the highest rating.
The “under development” forecast rating indicates a higher possibility in rating changes during the year.
In rating “Kredo-Klassik’s” financial stability, the moderate rate of the company’s development was taken into consideration. The growth of main balance indices in Q1 2005 were not at a high level. At the end of that period, company assets were 146.6 million UAH; its own capital was 112.8 million UAH. The premium sums that were collected in the quarter under review exceed by 24 percent for the same period one year earlier. Because of decreased profits from the lesser activities of the company, profit were slightly lower when compared with the previous period last year. Thanks to appropriate reduction in expenditures, “Kredo-Klassik” managed to maintain comparatively high profitability. Net profit of the company for Q1 2005 was 5.7 million UAH. At the same time, the company has level of solvency that is substantially greater than rated norms.
