"Expert RA"

Expert RA has affirmed the rating of Municipal Investment Company

April, 15th, 2008

The Expert RA rating agency has affirmed B++ rating (acceptable credibility level) of OAO Municipal Investment Company (MIC). “Diverse base of suppliers and clients, high level of openness and interaction with mass media, good diversification of financial sources, including the bond placement in 2007, contribute to the positive assessment of the company”, — says Anastassia Vakhrameeva, Expert RA analyst.

In relation to risk factors the agency analysts underscored high dependence of Municipal Investment Company on attracted funds, unsatisfactory profitability indicators, inconsistent geographic expansion outside the South Federal district and weak implementation of specialized automatic management system.

Municipal Investment Company provides leasing services at the South Federal district territory. Main areas of activity – aviation and motor transport, construction and specialized equipment, different types of machinery, real estate. The company deals with 80 plus Russian and foreign suppliers.

According to Expert RA, within 9 months of 2007 MIC has ranked 47-th among the RF largest leasing companies. The company new business within the three quarters of 2007 amounted to 1366 mln rubles, leasing portfolio – 1877 mln rubles, leasing collections – 560 mln rubles.

Diagram 1. OAO MIC sources of financing, 9 months of 2007, %