Rating Agency “Expert RA” assigned a credit rating “A” (high level of creditworthiness) to National Factoring Company. The positive impact on NFC’s creditworthiness have such factors as high level of capital adequacy (ratio N1 as of 01.08.2009 accounted for 36.8%), good reputation and strong competitive position on the Russian factoring market, high quality of factoring operations risk management system. The absence of large payments during the validity period of the rating (NFC almost fully settled the bond debt) also had a positive impact on the NFC’s rating. The low level of credit risks concentration on large clients and extensive opportunities of obtaining additional liquidity from the Bank of Russia and on the Interbank loan market (the total available limit of borrowings can double the current NFC’s operations) are typical for NFC. “The agency also highly appreciates the fact that NFC can be supported by his owner – added the leading expert of Financial Institution Ratings Department of rating agency “Expert RA” Michael Doronkin – For instance, NFC has a considerable perpetual limit opened by OJSC Uralsib, which creates additional level of liquidity in case of force majeure.

The main factor limiting the level of NFC’s rating is considerable increase of overdue receivables in 2009. As negative factors the Agency also points out the low ratios of return on assets and capital, decrease of business volume in the second half of 2008-2009 (for the period from 01.08.2008 till 01.08.2009 the Bank gross assets decreased by 56%) and low diversification of the funding base in terms of number of sources (NFC doesn’t maintain current accounts or obtain retail deposits).