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07.05.2007
Credit-Rating changes to Positive the Outlook on the rating assigned to bond issue by Universalnaya insurance company
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today affirmed at uaBBB the long-term credit rating assigned to bond issue by Lviv-based Universalnaya insurance company OJSC (Issuer` or company`) for the amount of UAH 30m with the 3-year original maturity. The Outlook on the rating is changed to Positive. To revise the rating the agency used Issuer`s financial statements for 2006 as well as other inside information furnished by the company.
The uaBBB issuer rating reflects company`s adequate capacity to timely and in full meet its commitments on the obligations 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 obligors with higher ratings. The "+" and "-" modifiers denote rating`s relative status within major categories.
Positive Outlook exhibits a possibility for a rating`s upgrade in the course of the year on condition that the positive tendencies are retained and the current risks are reduced.
In the course of the rating`s affirmation procedure the following factors have been taken into consideration: company`s 1.7x risen net revenue to UAH 958.3K from UAH 577.2K in line with the rapid development and increased expenditures. March 1, 2007 saw placement of the 7th shares` issue (40m items), which allowed the company to raise its authorized stock to UAH 100m from 60m providing the Issuer with the additional funds, specifically for strengthening its positions on retail market. The placement of high-liquid assets become more diversified, in fact as of Jan. 1 the company`s funds are placed on deposits in 90 branches of 24 banks with the share of 3 biggest deposits being under 39%. The volume of insurance payments from 10 biggest insured does not exceed 7% of the gross insurance payments, which exhibits extremely low company`s dependency upon its big clients. Company`s dependency on reinsurers remains low, specifically the share of reinsuring does not exceed 26% of the gross insurance payments.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found in the REUTERS, BLOOMBERG and FTN MONITOR information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
