HCFB: Ba3/NP/D Rating for Home Credit & Finance Bank Confirmed
OREANDA-NEWS. On October 30, 2007 Home Credit & Finance Bank LLC ("HCFB") [Moody's Ba3/NP/D-, S&P B+/В], one of the leading banks specializing in consumer banking in Russia, announced that Moody's confirmed a D- bank financial strength rating (BFSR), which translates into a Baseline Credit Assessment of Ba3. Rating outlook is stable, reported the press-centre of HCFB.
"We are pleased Moody's has issued its credit opinion and confirmed our rating despite recent market conditions, reflecting our focus on maintaining a strong balance sheet to provide a solid platform for our continued growth. Moody's report demonstrates the level of confidence the markets have in Home Credit and Finance Bank's business", says Dmitri Mosolov, Deputy Chairman of the HCFB Management Board.
Moody's Bank Financial Strength Ratings (BFSRs) represent Moody's opinion of a bank's intrinsic safety and soundness and, as such, exclude certain external credit risks and credit support elements. Factors considered in the assignment of BFSRs include HCFB's developing franchise beyond point-of-sale (POS) loans, thanks to (i) its ability to cross-sell as one of the largest consumer lenders and its recognised name in Russia, (ii) high and expanding geographical coverage which may help resist competitive pressure, (iii) the advantages associated with the bank's strong reported capitalisation levels, which should enable it to cope with potential adverse swings in asset quality, (iv) strengthening risk management and (v) the historical commitment of its shareholder. The bank's high loan book granularity and immaterial exposure to related parties also support the BFSR.
Notes to Editors:
Home Credit & Finance Bank (Moody's Ba3/NP/D-, S&P B+/B) is one of the leading banks specializing in consumer banking in Russia with a 21% market share in the point-of-sale market and a 12% market share of the credit card market as of 30 June 2007.
HCFB offers its clients a wide range of credit products with variable credit terms. As of 30 June 2007, HCFB's products have been distributed through more than 25,000 POS outlets across over 1,100 cities throughout Russia. The bank's regional network comprises 81 representative offices and 58 KKOs (loan offices) across the Russian Federation.
Companies of the Home Credit Group have been operating in the Central and Eastern European as well as Central Asian consumer finance markets and had granted loans in the combined principal of USD 2,7 billion as of 2006 year end. Home Credit Group maintains a leading position in the consumer finance markets of the Czech Republic (entered in 1997), the Slovak Republic (1999), the Russian Federation (2002) and the Republic of Kazakhstan (since December of 2005). Home Credit Group also entered the Ukrainian and Belarusian market in 2006.
The Home Credit Group belongs to the PPF international group of companies which has interests in insurance and consumer finance, and provides complex asset management services. During its 16 years in business, PPF Group has become a leading international financial investor, managing assets of over USD 10 billion as at the end of 2006.
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