On March, 21st, 2011 RA Expert Rating has confirmed infrastructure rating of collection company ‘Agency on Debt Management’ of CredEx Group of Companies (USREOU code 34914080) at the level uaA.col (high stability level).

Confirming the rating, ‘Expert Rating’ RA was guided by the following conclusions:
1. In 2010 the scale of operations of CredEx Group collection company grew essentially. For example, Company assets increased by13 %, the earning has been more than double and following the results of 2010 it totaled UAH 6,2 m. The amount of troubled debts bought out in 2010 grew by 78% and made up UAH 788 m. It made CredEx one of the first–rate collection companies in Ukraine.
2. During the year 2010 the Company showed two differently directed tendencies. On the one hand,
volumes of troubled debts taken over for collection under agency scheme have decreased by 28 % or
by UAH 57 m. On the other hand, the volume of the bought out troubled debts grew by 78 % and on
the beginning of 2011 has reached a historic peak for the Company. The Agency believes that the
given tendency has market character, the Agency scheme becomes all less popular in the market and
consequently CredEx expands debts collection operations. This tendency is positively assessed by
analytical service of RA ‘Expert-rating’.

3. In spite of the fact that in 2010 the Company managed to increase essentially volumes of business, it wasn’t able to break the negative tendency of unprofitable work. In 2010 the Company worked at UAH 807 th. loss. The given size of loss is not catastrophic for CredEx, however it increases credit risks of work with the Company itself. But as CredEx is neither emitter of bonds, nor public borrower, this type of risk is not being considered in the infrastructural rating estimate.
As a whole RA ‘Expert-rating’ estimates positively the achievements of collection group of CredEx group: growth of activity scale, increase of bought out debts in the working portfolio of troubled debts and presence of new transactions on acquisition of problem bank portfolios demonstrate a correct and predictable dynamics of business development.
In 2010 CredEx has begun developing regional network that by itself should positively influence the infrastructure rating of the Company. The analytical service of the Agency believes that in 2011 the infrastructure rating of CredEx group Collection Company can be raised after completion of regional network development and resumption of profitable work.

Analytical service of RA ‘Expert-Rating’

Press release