On November, 12th 2010 the RA ‘Expert Rating’ informed about awarding stability rating with outlook uaBBB- according to the nacionale rating scale to the LLC AUZ Factoring.

On November, 12th at the meeting of RA ‘Expert-rating’ Rating committee it was decided to award the company LLC AUZ Factoring the rating at the level uaBBB-. The given estimate means a rating of
investment grade, however specifies that activity of the emitter still bears considerable risks. As reason of decrease of rating to threshold level, to the opinion of Agency, such objective factors have served as:
1. Insignificant term of work of the company in the market, and also change of activity profile in the
end of 2009: transition from redemption of troubled debts to the redemption of commercial indebtedness.
The agency specifies that LLC AUZ Factoring has everything needed for successful work in the market and the data of the first 9 months 2010 prove to it. However business model of the company yet did not pass test by crisis phenomena, and company factoring portfolio was too young for the increase of troubled debts.
2. The Agency estimates positively methodological approaches of LLC AUZ Factoring to credit risks assessment, however draws attention to the absence of historical data on the portfolio which could confirm accurateness of estimates that gives them rather theoretical significance.
3. External support of the emitter has uncertain character. The shareholder does not guarantee security of the company by the equity. Guarantee mechanism has been chosen correctly, but yet is not efficient, and therefore remains formal.
4. The agency warns LLC AUZ Factoring and potential investors against decrease in capital adequacy level below 8 %. In this case the rating will be automatically lowered to speculative level.

Rating report on LLC AUZ Factoring

Page corporate on saturday AUZ Factoring