PRESS-RELEASE

(Translation from Russian)

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

 

May 22, 2012 RA «Expert-Rating» confirms the credit rating to bonds of the leasing company «Leasing IT-SPV», LLC at the level uaВВВ-. Confirming the credit rating of the issuer at the appropriate level, the analytical service of RA «Expert-Rating» was guided by the data about the efficiency of managing the leasing portfolio of «Leasing IT-SPV», LLC, as well as by key

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. NPL of more than 180 days is to be written off.

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

1. The company has continued its tendency of increasing its leasing portfolio in the Q1 of 2012. The number of transactions has increased in 2,7 times in the period from January of 2012 to March of 2012 in comparison with the same period of 2011 and has amounted to 2190 transactions. In the Q1 of 2012 the volume of transactions has increased by UAH 5,5 mln and has reached UAH 9,3 mln. The average amount of transaction has decreased by 9,8% due to the increase in proportion of households in total transactions.

2. The increase in the quantity of transactions has resulted in the growth of clients debt on the portfolio up to UAH 11,98 mln as of the end of the Q1 of 2012. The average effective interest rate of the portfolio has amounted to 122% per annum. The issuer is out of impact zone of interest risks with such a level of effective rate.

3. The level of non-performing loans over 90 days has amounted to 2,0% at the end of the Q1 of 2012, the level of write-offs (cumulative) – 19,1%. Therefore, 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 at more than 40%.

4. The cost of attractive resources in the Q1 of 2012 remains at the level of the end of 2011 and is in the range of 24-27% per annum that is related to a common increase in the cost of resources in the market, caused by a decline of liquidity due to the NBU policy, directed to retain a stable rate of national currency. According to the results of the Q1 of 2012 the bonds of the subsidiary of Private JSC «Leasing IT» – «Leasing IT-SPV», LLC – have won the first place by the number of transactions conducted in segment of corporate bonds in the Ukrainian Stock Exchange.

5. The forming portfolio continues to maintain a very high level of diversification – the proportion of the largest client doesn’t exceed 1% of the portfolio.

Table 2

Consolidated performance indicators* (th. UAH, %)

 * Consolidated balance sheet and financial indicators consist of indicators of the company-issuer «Leasing IT-SPV», LLC and the guarantor company for bond issue Private JSC «Leasing IT».

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

6. The analysis of consolidated financial statements of Private JSC «Leasing IT» and «Leasing IT-SPV», LLC has shown a manifold increase in revenues and expenditures that has been a logical consequence of the growth portfolio of leasing services. Negative consolidated financial result of the Group of Companies in the Q1 of 2012 has been formed by the loss of the guarantor company Private JSC «Leasing IT», arising from the increase in expenses aimed at expanding its operating activity that will increase the indicators of profitability in future.

 

Analytical service of RA «Expert-Rating»

Confirmation of «Leasing IT-SPV», LLC (english version) - 22.05.2012