Home Credit a.s.: Reaction to downgraded rating from Moody's

Home Credit announces full financing from the sources of PPF and termination of contract for paid rating services of Moody’s

Home Credit a.s. as has fully paid down all financial borrowings from the domestic and international markets since the beginning of 2009 and is now fully financed from the internal sources of its parent, PPF Group. As a result, Home Credit has become independent of external funding sources.

During the summer, Home Credit has refinanced its portfolios through two securitization transactions within PPF Group.

In spite of difficult economic situation in the EU market, including that of the Czech Republic, Home Credit reported net profit of CZK 614 million 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 Czech Republic´s economy, Home Credit expects continued stable performance.

With respect to discontinuation of financing from domestic and international markets, Home Credit 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 stated: „All our obligations have been redeemed while the company has sufficient and stable sources for its 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 on 24th September – 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 a.s. as of 20 October 2009. For further information, please refer to web sites


Pavlína Štrofová
Investor Relations Specialist
Tel: +420 224 174 265


Milan Tománek
Head of PPF Group Communications
Tel: +420 224 174 066


Home Credit a.s. (“HC”) is one of the leading consumer finance providers in the Czech 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 CZK 9.6 billion.

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.