Press Releases / 30.04.2014
Press Release as of 30.04.2014
JSC INFINITUM Asset Services
CJSC AK&M Rating Agency affirmed the national scale credit rating of INFINITUM Asset Services at 'A++', tier 1, with a stable outlook.
The 'A++' rating indicates that INFINITUM Asset Services is qualified as a highly reliable borrower, with the lowest risk of a delay in meeting obligations imaginable.
We regard the Company's steady position as one of leaders among Russia's special custody service providers, continuing growth of financial metrics, self-financed operations as the positive rating drivers for INFINITUM Asset Services.
INFINITUM Asset Services is firmly placed as one of the industry leaders, ranking second among Russia's special custody service providers in the total value of assets under control and the number of customers. The Company exercises control over 566 investment portfolios and keeps 1,137 custody accounts. INFINITUM Asset Services has approximately RUB 1.7 trillion in total assets under control, RUB 710 billion in assets in custody. The Company has also expanded the pool of major customers (non-state pension funds and mutual funds) and increased the value of assets under control compared with the start of 2013.
INFINITUM A.S. improved its financial performance in 2013. Revenue from services for the full year 2013 was RUB 687.19 million increasing by 16.9% against 2012. Net profit went up by 11.1%. The fairly high ROE and ROA ratios (27.3% and 24.5%, respectively) bear witness to the Company's operational efficiency.
The company has a very strong liquidity position and maintains a high equity to total assets ratio, financing the spending with own funds without external borrowings. The resources available are sufficient for current payments and for improving the workflows and business processes, given the vital need to keep them perfect as far as the services provided by INFINITUM A.S. are concerned.
In a word, the Company's high financial viability and financial independence (equity to total assets ratio), profitable operations, and continuing market leadership are the major contributors to its credit rating.
At the same time, the ongoing changes in the sector-specific regulatory framework and the dependence of revenues on the market value of the assets in service continue to exert pressure on the Company's rating.
The regulatory framework in the sector is subject to further changes relevant for all the participants of financial markets. In 2013, the Central Bank of the Russian Federation assumed the functions of Russia's Federal Financial Markets Service, which inevitably entails changes in both organizational / supervisory rules and documents regulating the accounting and reporting standards. Besides, additional functions will be officially assigned to specialized custody agents. In particular, the assets of insurance companies providing pension insurance, life insurance and obligatory insurance services shall be subject to mandatory control by specialized depositories starting July 1, 2015. Today's numerous changes require that specialized custody agents adapt to the new requirements including financial investments in the excellence of its technology, business processes, and staff competence.
The global economic situation is making a significant impact on the Company's financial metrics. The highly unpredictable fluctuations and long-term depreciation of the market value of securities may negatively affect the revenue calculated as a percentage of the total assets under control.
Full Company name: INFINITUM Asset Services
Short name: INFINITUM A.S.
INFINITUM Asset Services is licensed by the Federal Financial Markets Service to provide specialized custody services (license no. 22-000-1-00013 as of October 4, 2000) and standard custody services (license no. 177-07071-000100 as of October 31, 2003).
The Company is one of the largest specialized depositories in Russia providing the whole range of specialized custody services, investment unit register maintenance services for mutual investment funds, mortgage coverage register maintenance services, as well as information and consulting services.
This press release is based on the statement of assigning a credit rating to INFINITUM Asset Services.
The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's creditworthiness and shall not be construed as advice on the purchase and sale of securities or the provision of loan facilities to the Company.
CJSC 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.
CJSC 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).
CJSC AK&M Rating Agency
ul. Gubkina 3
Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.