OREANDA-NEWS. RusRating has lowered the credit rating assigned to Life Factoring from "B-" to “C” on the international scale and from "CCC" to “D” on the national scale, subsequently cancelling the rating.

The rating cut is based on a significant decline in the scale of the Company’s operations due to a corresponding drop in funding, as well as the increased frequency and scale of unmet obligations to creditors.

Constraining factors include a minimal scale of operations and a lack of access to funding.

About the Company

OOO FK Life [trs. Life Factoring Company LLC] specialises in the provision of factoring services to small and mid-sized enterprises, in some cases via partnerships with state-owned SME Bank under federal government SME support programmes. The Company previously belonged to the LIFE Group headed by ProbusinessBank, whose license was suspended last year; that bank’s former top managers are its ultimate beneficiary owners.

Capital adequacy is low. External liabilities consist mainly of bank loans, with a significant portion role played by former LIFE group affiliates. Risk sensitivity is high.