I. STATEMENT ON RATING
The Slovak Rating Agency is increasing its rating of Prvá doplnková dôchodková poisťovňa Tatry - Sympatia as follows:
| Long-term koruna rating | BBB + (stable outlook)
|
| Long-term foreign currency rating | BBB - (stable outlook)
|
| Short-term rating | S2
|
The rating assigned in the category of Slovak koruna transactions BBB+ (stable outlook) is one of degree below the state's rating level (A - stable outlook). In the category of foreign currency transactions Prvá DDP Tatry - Sympatia was assigned the rating BBB- (stable outlook), which is one degree below the level of risk of the Slovak Republic (BBB stable outlook). The short term rating assigned for Prvá DDP Tatry - Sympatia is S2, which is the best possible short term rating for subjects achieving a long-term rating of BBB+.
Reasoning:
- Prvá DDP Tatry - Sympatia in 2002 maintained its leading position in the Slovak additional pension insurance market with a 52% share. The insurance company's primary strategic aim in the coming period is to increase customer care.
- In the course of 2003 the fund administrator again strengthened the share capital of Prvá DDP Tatry - Sympatia - VSP Tatry a.s. to SKK 300 million. The Slovak Rating Agency perceives this as a positive feature, since strengthening the share capital in the case of the fund administrator also in the conditions of a certain uncertainty in the external environment caused by the ongoing reform of the pension system is an important step for the development of Prvá DDP Tatry - Sympatia.
- The insurance company's investment strategy for 2004 envisages investing mainly into more conservative financial and capital market instruments. The insurance company's effort in or 2004, which is accompanied by significant changes (the SR's accession to the EU, pension, tax, health and social reform), is also to adhere to the principal of prudent conduct and thereby ensure its clients stable appreciation of the funds entrusted by them. As at 30.09.03 Prvá doplnková dôchodková poisťovňa Tatry - Sympatia administered assets with an accounting value of SKK 5.43 billion, the insurance portfolio representing almost 285 thousand policy holders.
- A significant improvement and recorded in the development of the more risky aspects of the insurance company's investment portfolio, which the Slovak Rating Agency evaluates positively. For quality monitoring of individual investment reasons, it is however necessary for this to continue. The selection of trustees and business partners with which Prvá doplnková dôchodková poisťovňa Tatry - Sympatia cooperates nevertheless creates all the necessary preconditions for administering the portfolio at a sufficiently professional level.
- The Slovak Rating Agency also evaluates positively the insurance company's marketing activities (a cyclical campaign on additional pension insurance in public-legal television) aimed at increasing the public's awareness of the system of the additional pension insurance. A further benefit for the public is also the magazine Your Second Pension, which, among other things, provides information on current developments in the field of social and pension insurance, as well as information on the results of the insurance company's financial management.
Please don't hesitate to address your questions to autner@slovakrating.sk, or call +421 2 5464 5151.
Slovak Rating Agency
Bratislava, 25 November 2003