HC/HCS: Moody's affirmed National Scale Rating A3.cz and A3.sk respectively for Home Credit and Home Credit Slovakia; outlook is stable
Brno / Piešťany, 11/07/2007
Home Credit a.s. ("HC") and Home Credit Slovakia a.s. ("HCS"), one of the leading consumer finance providers in their respective markets in the Czech Republic and Slovakia jointly announce that Moody's affirmed national scale ratings of HC and HCS at A3.cz and A3.sk respectively. The announcement follows recent Moody's rating affirmation of Home Credit & Finance Bank LLC ("HCFB") [Moody's Ba3/NP/D-, S&P B+/В]. Rating outlook is stable."We believe the Moody's rating affirmation reflects our focus on maintaining a leading market position, while ensuring strong risk management processes in terms of approvals, collection and enforcement. This rating confirmation came after a similar action of Moody's last week, when the Moody's Bank Financial Strength Rating was confirmed for our sister company in Russia, Home Credit & Finance Bank", says Erich Comor, Chairman and CEO of HC and Chairman of HCS.
Factors considered in the assignment of A3.cz for HC, as stated by Moody's, include (i) HC's solid franchise in its niche market of consumer finance; (ii) extensive and well-managed points of sales; (iii) proven knowledge of consumer finance, given its position as one of the first players in the Czech consumer finance market; (iv) a good track record in capturing market share; and (v) strong risk management systems (both on the scoring and recovery sides).
The A3.sk national scale rating of HCS, as stated by Moody's, is based on: (i) the expectation of support and commitment from the Home Credit Group and HCS's operational integration with HC rated A3.cz; (ii) the company's leading position in the consumer finance market in Slovakia, being the second largest player in terms of principal granted with a market share of approximately 25% as of H1 2007; (iii) the extensive distributional network of its products based on partnership retailers covering the whole of the Slovak Republic; and (iv) strong risk management systems (both on the scoring and recovery sides) shared with HC.
National Scale ratings are intended primarily for use by domestic investors and are not comparable to Moody's globally applicable ratings; rather they address relative credit risk within a given country. A Aaa rating on Moody's National Scale indicates an issuer or issue with the strongest creditworthiness and the lowest likelihood of credit loss relative to other domestic issuers.
Moody's Credit Opinion - Czech Republic
Moody's Credit Opinion - Slovakia
Notes to Editors:
Home Credit a.s. (Moody'sA3,cz) is one of the leading consumer finance providers in the Czech Republic. The company provides loans in the form of consumer loans, revolving loans and cash loans. In 2006, the company granted loans in the combined principal of CZK 7.1 billion.
Home Credit Slovakia a.s. (Moody's A3.sk) is one of the leading consumer finance providers in the Slovak Republic. The company provides loans in the form of consumer loans, revolving loans and cash loans. In 2006, the company granted loans in the combined principal of SK 3.3 billion.
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.
For more information, please contact us on:
Markéta Mühlhoferová
Head of Investor Relations, HCG
Tel: (+420) 224 559 174
E-mail: marketa.muhlhoferova@homecredit.eu
Milan Tománek
Group Communication Manager, HCG
Tel: (+420) 224 559 573
E-mail: milan.tomanek@homecredit.eu
Press Inquiries:
Andrew Waterworth / Ed Gascoigne-Pees
Financial Dynamics
Tel: (+44) 20 7831 3113
E-mail: andrew.waterworth@fd.com / ed.gascoigne-pees@fd.com
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11/07/2007
