The management board of Echo Investment received an information from the company Kolaja&Partners about planned publication of a report estimating the financial standing of companies quoted at the stock exchange on the basis of Z-Score index (Altman index) calculated for these companies.

The previous edition of the Kolaja&Partners report- according to which 38 listed companies, including Echo Investment, were characterized as „threatened by bankruptcy” – caused a very big commotion on the market and was broadly discussed in media.
As it was explicitly demonstrated then, the Altman index – working in American circumstances- should not be used in relation to Polish economic specificity, and especially towards developers companies.

The management board of Echo Investment was surprised to learn, that the company was once more covered by Kolaja&Partners survey and maintained its stance from October 2008, expressing an opinion, that elaborating and publishing of reports based on inappropriate essential basis is harmful to the image of companies covered by the report, as well as their customers, investors and employees.

At the same time the management board of the Company requested the company Kolaja&Partners to exclude Echo Investment from surveys using Altman index.

The complete text of the letter directed to Kolaja&Partners may be found in the enclosed file.

The standpoint of the management board of Echo Investment on the report from October 2008, supplemented by opinions of experts on the Z-score index, is available in the Company’s archive of press releases: http://www.echo.com.pl/archive.php?news_id=762&r=2008

Opinion of the Management Board of Echo Investment SA on the Kolaja & Partners report [94 KB]