Credit-Rating Downgrades Strakhovi Tradytsiyi Bonds to uaB
OREANDA-NEWS. On July 9, 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaB from uaBB the long-term credit rating assigned to registered coupon bonds (series A) issued by Kiev-based Financial Group Strakhovi Tradytsiyi CJSC (`group` or `issuer`). The amount of the issue is UAH15m due Sep. 16, 2010. The outlook on the rating is negative. In the course of analysis Credit-Rating considered issuer`s inside and public information.
This rating action was triggered by increase in the amount of reserves for declared but not paid losses under simultaneous considerable decline in the amount of high-liquid assets; deteriorated quality of assets, which represent issuer`s insurance provisions; insufficient growth rates of issuer`s equity coupled with decreasing specific gravity of investment portfolio in the assets.
The negative outlook exhibits Credit-Rating`s expectations for retention of ongoing trends.
An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions.
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