I. STATEMENT ON RATING
Slovak rating agency grants following ratings to the pension insurance company Prvá doplnková dôchodková poisťovňa Tatry-Sympatia (hereinafter referred to as "Prvá DDP Tatry-Sympatia":
| Long-term local currency rating | BBB (positive outlook)
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| Long-term foreign currency rating | BB (stable outlook)
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| Short-term rating | S2
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The granted long-term rating in the category of transactions in Slovak crowns BBB (positive outlook) is 2 degrees below the rating of the Slovak Republic (A - stable outlook). In the category of transactions in foreign currencies rating BB (stable outlook) has been granted to Prvá DDP Tatry - Sympatia, which is 2 degrees below the risk level of the Slovak Republic (BBB- positive outlook). The short-term rating of Prvá DDP Tatry - Sympatia is S2, which is the best possible short-term rating for the entities attaining long-term rating BBB.
Rationale:
- Prvá DDP TATRY-SYMPATIA kept its leading position on the Slovak market of supplementary pension insurance with the share of 56 % in 2001. As of September 30, 2002, the share of the company in the Slovak market of supplementary pension insurance represented still 54,05 %.
- In June 2002, there was a high increase of capital stock of the joint stock company Všeobecná sociálna poisťovňa TATRY (General social insurance company TATRY) - the asset management company of Prvá DDP Tatry-Sympatia. Its capital stock has been increased to the amount of SKK 150 million on the part of the current shareholder - the investment group Trust Banking International Holding. Further raise in the capital stock of the asset management company to the value of SKK 225 million has been approved by General Assembly; process completion in the Commercial Register is expected. Raise of capital stock of the asset management company on the part of high professional and financially strong company creates preconditions also for a stable development of Prvá DDP Tatry-Sympatia.
- We highly appreciate the establishment of joint stock company Sympatia - Financie, o.c.p being established in accordance with new legislative standards, which will be the coordinator of the whole investment portfolio management of Prvá DDP Tatry-Sympatia. This enables the process of separation of financial assets management from operations management and stabilisation to EU standards to be continued.
- In the financial area, planning system continues to be the strength of the insurance company. Investment strategy of the insurance company for 2003 expects investments in more conservative tools of both financial and capital markets under predetermined clear investment rules and decision processes. Insurance company manages the assets with the book value of SKK 3,8 billion as of September 30, 2002.
- Even though enhancement has been shown in the process of monitoring of investment portfolio development, in our opinion, it is necessary to tighten up the economic monitoring process in the selected areas monitored by Prvá DDP Tatry-Sympatia.
Please don't hesitate to address your questions to autner@slovakrating.sk, or call +421 2 5464 5151.
Slovak Rating Agency
Bratislava, 19 November 2002