Credit-Rating Rates Asko-Donbass Severnyi Insurance at uaBBB
OREANDA-NEWS. October 05, 2010. Credit-Rating, a nationally recognized credit rating agency in
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
High specific gravity of cash in the company’s assets combined with high ratio’s of company’s performance efficiency.
Sufficient diversification of the assets that represent insurance reserves.
Growing volume and relatively balanced portfolio of raised insurance premiums in crisis environment.
Diversification of raised insurance premiums portfolio (the amount of payments from 10 biggest policy holders is under 2% of the portfolio).
Adequate quality and terms of loss settlement procedures alongside with gradually declining portion of claimed but not compensated losses in company’s general reserves.
No debt burden on the company.
Company’s information transparency and openness.
Factors constraining the credit rating
Necessity in augmenting company’s equity under expending company’s business.
High volume of funds invested in securities: as at Jul. 1, 2010 the share of 70% of the company’s common equity was invested in securities.
Insufficiently developed branch network – this limits amount or tax premium receipt.
Retaining adverse environment in the financial market and real sector of economy which may weigh on company’s financial indicators.
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