Home Credit Slovakia, a.s.: Reaction to downgraded rating from Moody's
Home Credit Slovakia, a.s. is financed with significant support of its parent, PPF Group and has terminated contract for paid rating services of Moody’s.
In spite of difficult economic situation in the EU market, including that of Slovakia, Home Credit Slovakia reported net profit of EUR 273 thousands for the half year period ended June 30, 2009. Stability of the company has been ensured by quick and effective measures taken already in the first phase of the global economic downturn in autumn 2008. With the improving outlook for the Slovakian economy, Home Credit Slovakia expects continued stable performance.
With respect to discontinuation of financing from domestic market, Home Credit Slovakia has terminated its contract with Moody´s for paid rating. Responding to yesterday’s press release of Moody’s, Erich Comor, CEO and Chairman of the Board of Home Credit Slovakia stated: „Our financing is complete and stable with significant support from PPF Group and we have sufficient sources for further growth. Our portfolio has developed fully in line with the recent development of the local market and proves the signs of expected improvement. We consider yesterday’s announcement by Moody’s – which was issued after Home Credit had terminated the rating contract– as a sort of “moody” response to our discontinued business relation with Moody’s.“
Moody’s Investors Service downgraded the long-term national scale issuer rating of Home Credit Slovakia a.s. as of 20 October 2009. For further information, please refer to web sites www.moodys.com.
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Home Credit Slovakia, a. s. is one of the leading consumer finance providers in the Slovak Republic. The company provides loans in the form of consumer loans, revolving loans, credit cards and cash loans. In 2008, the company has financed its clients‘purchase worth SKK 4.47 billion (EUR 149 million).
Companies of the Home Credit Group operate on consumer finance markets in the Central and Eastern Europe, the Central Asian and the Far East. As at year-end 2008, the company had granted loans in the combined principal of EUR 3.6 billion. Home Credit Group maintains one of the leading positions in the consumer finance markets of the Czech Republic (Home Credit since 1997), the Slovak Republic (Home Credit Slovakia, since 1999), the Russian Federation (Home Credit & Finance Bank, since 2002) and the Republic of Kazakhstan (Home Credit Kazakhstan, since December 2005). Home Credit Group also entered the Ukrainian and Belarusian market in 2006 (CJSC Home Credit Bank, Home Credit Finance and OAO Home Credit Bank respectively), China (Home Credit Asia, December 2007) and Vietnam (April 2009).
The Home Credit Group is a member of PPF Group, established in 1991, which is a leading international investment group. PPF Group focuses on financial services (banking, insurance and consumer finance), private equity investments, and investments in real property. PPF Group also actively seeks investment opportunities and undertakes strategic investments in emerging markets of the Central and Eastern Europe and Asia. During its 18 years in business, PPF Group has become an important international financial investor, managing assets of EUR 10.1 billion as of 30 June 2009.