PRESS-RELEASE

(Translation from Russian)

RA «Expert-Rating» confirms the credit bond rating of «VAB Leasing», LLC at the level uaBBB+

 

 March 22, 2012 Rating Agency «Expert-Rating» confirms the rating of bond issue of «VAB Leasing», LLC at the level uaBBB+ according to the national scale. A separate bond with rating uaBBB+ is characterized by sufficient solvency in comparison with other Ukrainian borrowers or bonds. The level of solvency is affected by adverse commercial, financial and economic conditions. When confirming the credit rating, the Agency was guided by the results of the company’s activity for 2011.

Table 1

Key performance indicators of «VAB Leasing», LLC  (th. UAH, %)

Source: Data of the Company, calculations by RA «Expert-Rating»

1. The company has managed to significantly decrease its debt burden in 2011. Thus, the Company’s liabilities have declined by 33% in comparison with 2010. Bank loans have decreased by UAH 50,9 mln, Total outstanding bonds of the company to the bondholders – by 44%. As a result, ROA has increased by 2 p.p. Shareholders’ equity of the Company has also grown by UAH 8,6 mln.

Another positive result from the activity of «VAB Leasing», LLC in 2011 is financial results. Total revenues have grown almost in 5 times in comparison with the same indicator of 2010 and have amounted to UAH 3,7 mln. Net profit of the Company has also increased by 24%.

 

Table 2

Indicators, characterizing the leasing portfolio of «VAB Leasing», LLC (th. UAH, %, pcs)

Source: Data of the Company, calculations by RA «Expert-Rating»

 

2. In 2011 «VAB Leasing», LLC has confidently been increasing its leasing portfolio. Number of agreements has increased by 22% in comparison with 2010. The growth in total value of leasing agreements is only 9% that is explained by the greater orientation of the Company’s policy towards concluding agreements with individuals. Value of leasing agreements with individuals in 2011 exceeds the indicators of the previous year by UAH 9,3 mln (33%).

The indicators of diversification of the Company’s leasing portfolio have changed. Thus, the proportion of leasing agreements, which end in more than a year, has decreased by 10% in comparison with the 2010, and has amounted to 40,2% of total value of leasing agreements concluded by «VAB Leasing», LLC.

Tightening of the Company’s risk-management in respect of new clients and work with existing debts of leasing agreements in 2011 has given appreciable positive results. Value of leasing agreements, whose payments are detained by more than 30 days, has decreased by UAH 14,5 mln in comparison with the 2010. This has enabled the Company to decrease the Bad debts provision by 29%. At the same time, the ratio of Value of leasing agreements, whose payments are detained by more than 30 days towards Bad debts provision has hardly changed that characterizes the risk policy of the Company as balanced and cautious.

 

Analytical service of RA «Expert-Rating»

Confirmation of «VAB Leasing», LLC (english version) - 22.03.2012