PRESS-RELEASE

(Translation from Russian)

RA «Expert-Rating» confirms the rating of bonds of «Leasing IT-SPV», LLC at the level uaВВВ-

 

March 23, 2012 RA «Expert-Rating» confirms the credit rating of bonds of the leasing company «Leasing IT-SPV», LLC at the level uaВВВ-. Confirming the credit rating of the issuer at the corresponding level, analytical service of RA «Expert-Rating» was guided by the data of efficiency of loan portfolio’s management of «Leasing IT-SPV», LLC, as well as by the key performance indicators of Private JSC «Leasing IT» according to the results of 2011.

Table 1

Key indicators of the leasing portfolio at the balance of «Leasing IT-SPV», LLC (UAH, %)

*   Since July of 2011 the company calculates the indicator NPL (non-performing loans) ?90 days; the debt over 180 days is to be discarded.

**The average for the period.

*** Data at the end of reporting year.

Source: Data of «Leasing IT-SPV», LLC, calculations by RA «Expert-Rating»

When confirming the rating, the Agency was guided by the following conclusions:

 

«Leasing IT-SPV», LLC participates in asset securitization, carried out by Private JSC «Leasing IT» since April of 2010, that’s why for comparability key indicators of leasing portfolio are represented for the 9 months of 2010 and for the 9 months of 2011.

1. The Company conducts active program of attracting the clients. The result of its activity is the following indicators: number of transactions in the period from April to December of 2011 has grown by 249% in comparison with the same period of 2010 and has reached 3606 transactions. The volume of transactions for the period has also badly increased by UAH 11,447 mln and has amounted to UAH 16,967 mln. The average amount of transaction has decreased by 13,78% that is explained by the increase of households’ proportion in total transactions by 10%.

2. Total clients’ debt has also increased. At the end of December of 2011 this indicator has amounted to UAH 9,4 mln. The Company has steadily increased the volume of transactions, while the average effective rate on the portfolio has been about 120,5% per annum. At such an effective rate, the issuer has been out of influence of interest risks.

3. The level of non performing loans over 90 days have amounted to 1,72% at the end of 2011; the level of write-offs (cumulative) – 16,85%. Thus, the level of write-offs provided by the basic scenario of portfolio’s indicators of 20% has not been exceeded. At the same time, the crisis scenario assumes that the portfolio can sustain the level of write-offs of more than 32%, while maintaining the current profitability – more than 40%. The cost of attractive resources in the 4-th quarter has increased and has been in the range of 24-27% per annum. That has been related to a common increase in the cost of resources in the market, caused by the decline of liquidity due to the actions of NBU, directed to retain a stable rate of national currency. The forming portfolio continues to restrain a very high level of diversification – a proportion of the largest client doesn’t exceed 1% of the portfolio.

Making decision about investments into bonds of the issuer, investors have to take into consideration the following factors:

• October 4, 2011 The SSMSC registered the bond issue of «Leasing IT-SPV», LLC of series B for UAH 100 mln. As of 29.02.2012 the series B wasn’t in circulation;
• November 23, 2011 «Leasing IT» paid the coupon income to the investors for the 15-th coupon period in full. Total paid coupon income amounted to UAH 460 th.
• December 29, 2011 «Leasing IT» performed registration from CJSC (closed joint-stock company) to Private JSC (private joint-stock company) and made all necessary changes in the constituent documents in order to bring them in accordance with the requirements of law of Ukraine «About joint-stock companies».

 

Table 2

Key performance indicators of Private JSC «Leasing IT» (th. UAH, %)

     * Financial income – income and penalties of the “old” portfolio

Source: Data of Private JSC «Leasing IT», calculations by RA «Expert-Rating»

Analytical service of RA «Expert-Rating»

Confirmation of «Leasing IT-SPV», LLC (english version) - 23.03.2012