Expert RA has assigned a credit rating of ruAA to Europlan with a stable outlook

Expert RA, a rating agency, has assigned a credit rating of ruAA with a stable outlook to Europlan, a subsidiary of PJSC LC Europlan (a 100% subsidiary of SFI, MOEX:SFIN).

The rating was given based on Europlan's strong market positions, high capital adequacy and operating efficiency, high-quality leasing portfolio, comfortable liquidity position, as well as high standards of corporate governance.

Europlan's strong market positions are attributed to the company's significant presence in the Russian leasing market. As of the end of 2022, the company remains one of the leaders in the car and truck leasing segments. Despite a 12% decline in new business due to geopolitical changes affecting the Russian car market, Europlan's net investment in leasing (NIL) balance grew by 14% in 2022.

To offset the decrease in passenger car transactions, the company increased business volumes in the truck and construction equipment segments, which helped further diversify the portfolio. The risk of the portfolio being overly concentrated on specific types of property is mitigated by the high liquidity of the leased items.

Europlan boasts a wide network of sales channels and a stable, loyal customer base, which contributes to a high level of repeat business.

The portfolio is well-diversified through property leasing suppliers, with the top 5 suppliers comprising less than 5% at the start of 2023. The company established partnerships with Chinese brands before 2022, which helped mitigate the impact of certain Western manufacturers suspending their operations in the Russian market.