December 29, 2011 at the special meeting of the rating committee of RA «Expert-Rating» it was made a decision about assigning the credit rating to the company «VAB Leasing», LLC and to its bond issue at the level uaBBB+ according to the national scale. The borrower and the bonds with rating uaBBB+ are characterized by sufficient creditworthiness in comparison with the other Ukrainian borrowers or bonds. The level of solvency depends on the influence of unfavorable commercial, financial and economic conditions. When confirming the credit rating at the investment level, the Agency was guided by the following conclusions:

1. «VAB Leasing», LLC has a long history of development. At the same time the Company has gone through the period of reduction in assets and liabilities for the last 12 months. Thus, as of 30.09.2011 assets of «VAB Leasing», LLC have constituted UAH 160,239 mln. that is by 23,37% less than in the same period of 2010. The Company’s liabilities have also decreased by 35,63% for the period 30.09.2010-30.09.2011  and as of the reporting date they have constituted UAH 98,681 mln. The Agency emphasizes that the reduction of assets and liabilities has occurred due to such factors as the decline in the overdue portfolio and in the non-earning assets that has positively affected the solvency of the Company. Therefore, shareholders’ capital of «VAB Leasing», LLC has increased by 10,34% or by UAH 5,771 mln. for the same period. If on 30.09.2010 shareholders’ capital/ assets ratio has constituted 36%, on 30.09.2011 this ratio has been fixed at 62,37%.

2. EBITDA at the level of UAH 22,7 mln., which the company showed the value of for the 9 months of 2011, covers almost the entire payment schedule of debts with interest load. The exception is June of 2012 when the payment is UAH 30,181 mln. It should be noted that part of resources raised from the bonds offering can be used for paying debts to creditors. In 2012 the company will be able to partially make a replacement of debts if it’s necessary.

3. The diversification analysis of the leasing portfolio of the Company enabled to make positive conclusions about the level of the portfolio diversification. Thus, the structure of the leasing portfolio of «VAB Leasing», LLC according to the periods remaining until the completion of contracts looked as follows: less 1 year – 35,98% (UAH 199,032 mln.), from 1 to 2 years – 16,03% (UAH 88,67 mln.), from 2 to 3 years – 18,31% (UAH 101,304 mln.), from 3 to 5 years – 29,68% (UAH 164,218 mln.).

4. The analysis of the industry structure of the leasing portfolio shows a rather wide range of services and products offered by the Company to its clients. A large proportion of the portfolio belongs to the debt of legal entities – 90,06%, where the largest proportions are possessed by such industries as: construction – 18,49% (UAH 32,443 mln.), agriculture – 29,66% (UAH 52,057 mln.) and services – 22,73% (UAH 39,894 mln.).

5. The analysis of the leasing portfolio quality of the Company has demonstrated a satisfactory level of such a quality. So, as of 30.09.2011 total amount of the portfolio, which has an overdue debt, has constituted UAH 20,995 mln., whose larger part belongs to the portfolio with maximum delay of payments from 91 days. But it should be noted a trend of considerable reduction in the portfolio’s volume, which has an overdue debt, as of 30.09.2011 in comparison with 30.09.2010. The Company has formed the reserves of UAH 10,421 mln. that correspond to 5,35% of the leasing portfolio in order to compensate the losses from the devaluation of the leasing portfolio.

6. «VAB Leasing», LLC has a positive credit history. The issuer has redeemed 12 credits since 2005. The parent bank and the minority shareholder of the bank were not the only creditors of the issuer, but there also were UkrSibbank BNP Paribas Group, The first Ukrainian International Bank, Universal Bank (is a part of the international bank group Eurobank EFG Group), BANK FORUM (a member of international bank group Commerzbank) and other banks. In the past the Company hadn’t any episodes of default to lenders.

Analytical department of RA «Expert-Rating»