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18.01.2007
Credit rating assigned to the bond issue by «Insurance Company «Universalnaya» OJSC affirmed at uaBBB
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today affirmed the uaBBB long-term credit rating assigned to bonds issued by Lviv-based "Insurance company "Universalnaya" OJSC ("the Issuer" or "the company") for the amount of UAH 30m with the 3-year original maturity. The credit rating was assigned on 27 September 2006. To affirm the rating the "Credit-Rating" agency used Issuer`s financial statements for 2002-2005 and 9 months of 2006 as well as other inside information furnished by the company.
The uaBBB issue rating reflects adequate capacity of an obligor to timely and in full pay the given debt liability in the Ukrainian financial market environment , there is, though, a higher vulnerability to the effect of adverse changes in business, financial and economic conditions as compared to the debt liabilities with higher ratings.
To affirm the company`s rating the following factors were taken into consideration: rapid growth in company`s indicators according to 3Q and 9 months 2006 totals, specifically the company`s assets grew at the expense of main funds by UAH 5.48m (by 23.04%), the accounts receivable by UAH 649.8 thousand (by 2.48%), the overall size of company`s reserves as of October-beginning of the year under analysis amounted to UAH 55.4m, the volume of insurance premiums amounted to UAH 121.8m (84% of all premiums earned by the company in 2005, the insurance payments amounted to UAH 36m (81% of all company`s payments in 2005), company`s net profit amounted to UAH 620.4 thousand, which is 43.2 thousand more than in 2006. The Issuer actively develops its regional network throughout Ukraine, in fact as of 1 st July 2006 the company had 47 affiliates, 12 branches and 4 representative offices in Ukraine, and a representative office in Hungary. At the same time the "Credit-Rating" agency takes into account volatile company`s performance over the past few years entailed by the company`s rapid growth. A part of Issuer`s financial investments (investments into securities) are diversified insufficiently. Issuer`s activity in the most unprofitable and competitive insurance market niches and its plans on significant network development in 2007-2008 will aggravate the company`s performance indicators. Moreover, risks of the "Universal investment group" are shared with those of the Issuer.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found in the REUTERS and BLOOMBERG information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
