The ‘A’ rating indicates that LIKONS OOO is qualified as a highly reliable borrower. Risk of a delay in meeting liabilities is relatively low, restructuring risk for a loan / part of a loan is minimal.

The rating score of LIKONS OOO is essentially supported by the improving key performance indicators, the growing cash flows, and the comfortable debt burden.

Retrospectively, the Company’s revenue was permanently on the rise in the medium term, growing even during the latest economic slump. The average annual growth rate in 2009-2011 was 22%. Over this period, the Company’s assets increased by half and reached RUB 1,793.9 million as of the end of Q1 2012. For the same period, the Company’s lease portfolio increased more than twice to RUB 1,575.9 million. As of the end of 2011, revenue to lease portfolio ratio was 30% indicating that the Company is highly efficient and naturally supporting its rating score.

LIKONS OOO currently generates fairly high cash flows. Net cash flow for 2011 exceeded RUB 1 billion increasing by 41% year-on-year. This sum exceeds the Company’s combined loan obligations as of the end of 2011 (including long-term loans) by almost 30%. The Company’s high rating score is therefore mainly attributable to this favorable cash flows to obligations ratio.

The debt burden on LIKONS OOO is rising, although it is still acceptable. In 2009-2011, the debt/EBITDA ratio ranged from 2x to 2.5x, being within the traditional financial covenant used in the banking sector. The essential increase (26.6%) in the Company’s total obligations in the first quarter was brought on by the obvious need to augment the resource base to be able to perform its obligations under the newly concluded contracts. For this period, the Company concluded 55 new finance lease contracts for almost RUB 800 million (105 contracts for RUB 946 million in the whole year 2011, respectively).

Other positive signals for the rating score of LIKONS OOO are the high automation of business processes based on object-oriented software and the high risk management quality (the leasing payments in arrears account for no more than 0.6% of the loan portfolio).

The rating score of LIKONS OOO is restricted by the low profitability, the low equity capital adequacy and the low lease portfolio diversification.

In 2009-2011, return on the Company’s sales decreased from 33.5% to 15.7%, return on assets shrank from 0.29% to 0.23%, far below the average level in Russia’s leasing sector.

Another risk factor for LIKONS OOO is its low margin producing an impact on the growth of its equity capital restricted to the amount of net profit. While the Company’s assets are expanding, its equity capital adequacy is looking down. As of 4/1/2012, it was equal to 2.72%, lower than many other players of the Russian leasing market have achieved.

The high concentration of business activities on large clients is also restrictive on the rating score. The 10 largest lessees account for about 80% of the lease portfolio as of the end of June 2012

LIKONS OOO has been active in the market of leasing services since 2001 primarily focused on Moscow and Moscow region. The Company firmly holds its middle position in Russia’s leasing sector. As of the end of 2011, LIKONS OOO ranks 69th among the Russian companies in the amount of the lease portfolio, 77th in the amount of new business, 63rd in the amount of lease payment.

The company specializes in the finance lease of automobiles, commercial vehicles, equipment and special machines.

This press release is based on the statement of assigning a credit rating to LIKONS OOO.

The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's reliability and shall not be considered as advice on the purchase and sale of securities or the provision of loan facilities by any bank.

AK&M Rating Agency will not incur any responsibility for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993.

AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010).

AK&M Ratings are recognized by the Central Bank of Russia (for providing unsecured lending facilities – Provision 323-P), Vnesheconombank (for granting subordinated loans) and SME Bank (for its program of lending to SME businesses), RUSNANO (when selecting banks to provide business banking services to project and engineering entities implementing investment projects), the MICEX (as a prerequisite for including bonds in the Corporate Bond Index / MICEX CBI and Municipal Bond Index / MICEX MBI calculation base and for listing bonds). Pursuant to an order of Russia's Government AK&M Ratings count for approving the capitalization increase procedure for banks. Besides, AK&M Rating Agency is recognized by AHML and accredited by SRO National Securities Market Association.

CJSC Analysis, Consulting and Marketing Rating Agency
ul. Gubkina 3
Moscow, Russia
www.akmrating.ru
Press release by: A.V. Khibukhin
Phone no. (495) 916-70-30, fax no.: (499) 132-69-18