PRESS-RELEASE

(Translation from Russian)

RA «Expert-Rating» confirms the credit rating to bonds of «VAB Leasing» at the level uaBBB+

 

May 8, 2012 the Rating agency «Expert-Rating» confirms the rating of the bond issue of the company VAB Leasing at the level uaBBB+ according to the national scale. A separate bond with rating uaBBB+ is characterized by a sufficient solvency in comparison with other Ukrainian borrowers or bonds. The level of solvency depends on the impact of unfavorable commercial, financial and economic conditions. Confirming the credit rating, the Agency was guided by the results of the company’s activity for the Q1 of 2012.

Table 1

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

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

 

Confirming the rating, the Agency was guided by the following conclusions:

1. In the Q1 of 2012 the company has continued the tendency of decreasing its debt burden. Thus, in the period from 31.03.2011 to 31.03.2012 the company’s liabilities have decreased by 27%. Bank loans have decreased almost in twice – by UAH 47,8 mln, total debt to the bond investors – by UAH 16,7 mln. Shareholders’ equity of the Company has grown by 15% and has amounted to UAH 67,2 mln.

2. The analysis of financial results of VAB Leasing has shown that in the Q1 of 2012 the company’s revenue has grown by 75% compared to the same indicator of the Q1 of 2011. The financial result from operating activities has fallen, but due to the increase in financial income and the reduction of financial expenses, net profit of the company has grown by 10% and has amounted to UAH 2,6 mln.

3. Such indicators as ROE and ROA have remained almost unchanged, while the shareholders’ equity/liabilities ratio has grown by 24,3 p.p. compared to the end of the Q1 of 2011.

 

Table 2

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

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

4. A well-designed marketing policy in the segment of individual leasing has enabled VAB Leasing to increase the value of leasing agreements with individuals by 73%. The number of leasing agreements is by 31% higher in the Q1 of 2012, than in the Q1 of 2012. A temporal structure of the leasing portfolio has changed, therefore in particular short-term agreements, which end in more than 12 months have increased by 16%.

In the Q1 of 2012 the company has decreased the bad debt provision by UAH 1,08 mln, and has increased the reserve for compensating the impairment of leasing portfolio only by UAH 0,5 mln, while the value of agreements with individuals has increased by UAH 23,4 mln compared to the indicators of the Q1 of 2011. In future RA «Expert-Rating» expects from VAB Leasing the increase in the reserve for compensating possible loss due to the risks related to the increase in the proportion of individuals in the general leasing portfolio.

 

Analytical service of RA «Expert-Rating»

Confirmation of VAB Leasing (english version) - 08.05.2012