RA «Expert-Rating» confirms the rating of the bonds of “Leasing IT-SPV”, LLC at the level uaВВВ-
29/12/2011
December 29, 2011 RA «Expert-Rating» confirms the credit rating of the bonds of the leasing company «Leasing IT-SPV» at the level uaВВВ-. When confirming the credit rating of the issuer at the given level, the analytical department of RA «Expert-Rating» was guided by the management efficiency of the leasing portfolio of “Leasing IT-SPV”, LLC and also by the key performance indicators of Private JSC “Leasing IT” according to the results of the 9 months of 2011.
Table 1
Key indicators of the leasing portfolio at the balance of «Leasing IT-SPV», LLC (UAH, %)
Indicators
September of
2011
August of
2011
July of
2011
June of
2011
May of
2011
April of
2011
March of 2011
February of 2011
Januaryof 2011
December of 2010
Novemberof 2010
Octoberof 2010
September of 2010
GrowthrateofindicatorsSeptember 2010 – March 2011
1. Turnovers on the portfolio
-
-
-
-
-
-
-
-
-
-
-
-
-
The number of transactions for the period
443
345
302
261
268
263
314
278
207
364
211
162
135
228,15%
Volume of transactions for the period
2150287,2
1 739427,1
1473019,9
1186063
1318518,4
1243265,5
1509854,8
1195681,2
1052247,6
2028140,3
1034873,5
718349,3
742377,7
189,65%
Proportion of households in total volume of transactions (%)
98,3
99,5
98,9
99,2
96,5
95,8
97,5
100,0
100,0
97,1
100,0
100,0
97,6
0,72%
The average transaction amount for the period
4853,92
5041,82
4877,55
4544,3
4919,8
4727,3
4808,5
4301,0
5083,3
5571,8
4904,6
4434,2
5449,3
-10,93%
2. Characteristics of the portfolio
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Total clients debt of the portfolio
6033465,1
5148861,4
4599174,3
4249556
4119772,6
3952255,8
3784539,1
3400063,5
3172570,2
3068016,4
1922194,9
1465495,3
1154347,3
422,67%
Proportion of households in total debt (%)
98,4
98,3
97,7
97,3
96,9
97,4
98,2
98,8
98,4
98,1
99,5
98,7
97,7
-
The weighted average effective interest rate (%)
120,88
119,09
120,71
126,75
119,75
121,40
118,57
119,36
118,98
119,86
121,05
120,25
119,22
-
The proportion of non-performing loans overdue more than by 30 days in the portfolio (%)*
-
-
-
2,06
4
2,7
3,2
1,9
1,1
0,2
0,03
-
-
-
The proportion of non-performing loans overdue more than by 90 days in the portfolio (%)*
1,59%
2,93%
3,49%
-
-
-
-
-
-
-
-
-
-
-
Level of decommissioned bad debts, %
13,99%
12,00%
9,06%
1,95%
-
-
-
-
-
-
-
-
-
* SinceJulyof2011 the companycalculatestheindicatorNPL (non-performingloans) ?90 days; The debt over 180 days isto be discarded.
Source: Data of the company «Leasing IT-SPV», LLC, calculations by RA «Expert-Rating»
1. The number of transactions for the period has grown by 228% and in September of 2011 has reached 443 transactions, at the same time a monthly volume of transactions has increased up to UAH 2,15 mln. and in September of 2010 it constituted UAH 742,3 th. The average monthly amount of the transaction has been dynamic, since September of 2010 to September of 2011 it dropped by about 11%. However, the average amount of transactions has constituted UAH 4886 for the last 12 months that haven’t much exceeded the indicators in September of 2011.
2. Total clients debt of the portfolio continued to grow during the last 12 months. In September of 2011 it reached UAH 6,033 mln. This indicator has grown in 5,22 times for the last 12 months. The company confidently increased its volume of transactions while it managed to maintain the effective interest rate of the portfolio nearly at 120% per annum during all the 12 months. At such a level of effective rate, the issuer was out of the influence of the interest rate risks, which worsened in the Ukrainian market in autumn of 2011 with the growth of interest rates in the interbank loans market.
3. The level of non-performing loans overdue more than by 90 days (NPL) has constituted 1,59% at the end of September, the level of decommissioned bad debts (cumulative for the 9 months of 2011) – 13,99%. The level of decommissioned bad debts is provided at 20% in the baseline portfolio of indicators. At the same time the crisis scenario assumes that the portfolio can sustain the level of decommissioned bad debts more than at 32% and while maintaining the current yield – more than at 40%. The price of attractive resources in Q3 has continued to decline and has been in the range of 20-24% per annum. The formed portfolio continues to maintain a very high level of diversification – the proportion of the largest client doesn’t exceed 1% of the portfolio.
When making a decision about the investments in the issuer’s bonds, the investors must take into consideration the following factors:
- August 25, the Company «Leasing IT» paid the coupon yield to the investors for the 15th coupon period in full. Total paid amount of coupon yield constituted UAH 408 074,51.
- August 31 of 2011, a subsidiary of Private JSC «Leasing IT» – «Leasing IT-SPV», LLC made a decision about the public offering of registered, interest, secured bonds amounting to UAH 100 000 000,00 (the issue of bonds of Series B was registered by SSMSC on October 04, 2011). As of 29.12.2011 the bonds of Series B weren’t in circulation, and the credit rating was assigned by RA “Expert-Rating” only to the bonds of Series A.