Fitch Ratings, one of the top three global credit rating agencies, has maintained a Long-Term Issuer Default Rating (IDR) of ‘B+’ for Autonom Services SA and revised the company’s outlook from negative to stable. The outlook revision reflects Autonom’s resilient financial performance since the onset of the coronavirus pandemic, notably regarding profitability, asset quality and funding and liquidity.
“Since the early days of Autonom, one of the key policies has always been to preserve a financial fortress at our company – a solid business model, built on high liquidity and solvency. This approach has strongly contributed to growing our business in 2020 and maintaining profitability even in the context of a major global crisis. We are pleased that the measures we took in 2020 to respond to the coronavirus pandemic were acknowledged and appreciated by Fitch Ratings. We managed to improve our performance in the eyes of an independent agency, progressing from a negative to stable outlook within just a year, a year that happens to be the most challenging in our industry to date. We attribute this performance to Autonom’s management based on values and autonomy that guided our teams in all the decisions that were made in 2020.”
Marius Stefan, co-shareholder of Autonom International, a group of companies that includes Autonom Services
The rating update was issued by Fitch on June 3rd, 2021, as a follow-up to the initial rating published on June 3rd, 2020. In the report, Fitch noted that Autonom’s B+ stable rating reflects the company’s small but growing franchise and favorable market conditions of increasing demand for leasing services in Romania. The rating considered Autonom’s good profitability in 2020, supported by a business model with limited reliance on short-term rentals, reasonable asset quality, and an experienced management team. In addition, the moderate exposure to business relying on tourism and airport traffic contributed to reducing vulnerability to future lockdowns and lower international travel volumes.
Fitch expects Autonom’s performance to further recover in 2021. In 2020, a year marked by a global pandemic that brought multiple challenges to the markets and sectors in which the company operates, Autonom Group increased operating revenue by 10% and significantly strengthened its financial position. Consequently, the Group posted revenues of 327 million lei and a net profit of 7.2 million lei. For 2021, the management expects improved performance in terms of both turnover and profitability to be fueled by potential M&A transactions in the local market.
“Despite 2020 being extremely difficult, last year confirmed to us that Autonom’s business model is agile and sustainable, built to withstand shocks. For 2021, we are actively looking at the local market, analyzing potential acquisitions of companies with a compatible business model. We are ready for another growth period for Autonom Group, aiming for a double-digit growth rate of revenues and significantly improved profitability compared to 2020.”
Dan Stefan, co-shareholder of Autonom International, a group of companies that includes Autonom Services
In the update, Fitch also affirmed the ‘B-‘rating of Autonom’s corporate bonds issuance that is tradable on the Main Market of the Bucharest Stock Exchange under symbol AUT24E. The corporate bonds issuance that floated on BVB in December 2019 has a total value of 20 million euro. In 2020, 65 transactions were made by investors with AUT24E bonds as the total traded value reached 231,395 euros, so 1% of the total issuance as a result of a steady base of institutional bondholders.
Fitch’s credit ratings relating are an opinion on the relative ability of an entity to meet financial commitments such as interest, repayment of principal, insurance claims or counterparty obligations. Receiving the credit rating is part of a transparency strategy adapted by Autonom. By having the rating from a globally renowned rating agency, financial instruments issued by Autonom can now be addressed to a broader pool of local and international institutional investors. Autonom’s first corporate bonds placement was oversubscribed, having a balanced bondholders structure, including retail and institutional investors such as European Bank for Reconstruction and Development, open-end investment funds, banks, financial investment companies, and local insurance companies.
The rating update can be accessed at: https://www.fitchratings.com/research/non-bank-financial-institutions/fitch-revises-outlook-on-autonom-services-to-stable-affirms-at-b-03-06-2021
About Autonom
Established in 2006 in Piatra Neamt by entrepreneurs Marius and Dan Stefan, Autonom is an integrated provider of mobility and financing solutions. Autonom operates through a unique national network of 44 agencies based in 33 cities in Romania, Hungary, and Serbia. The Group offers a diverse portfolio of services for corporate and individual clients, including short- and medium-term car rental, operating leasing, chauffeur transportation services, temporary car fleet rental, fleet management, road assistance, and carwash as well as equipment lease. Across all divisions, Autonom has over 500 employees and operates a fleet of more than 9,000 cars.