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19.02.2009
Credit-Rating: Situation in Ukraine`s banking sector to worsen
The banks` key figures, i.e. liquidity, profitability, asset quality have declined drastically in 4Q2008.The outflow of customers` funds has prompted decline in liquidity of banking institutions, with a number of them poised to failure in meeting their obligations. The regulator`s actions aimed at stabilization in the financial sector had no positive impact on renewing confidence to financial institutions, though allowed many banks to avoid defaults in this period.
Considering the situation in the economy and financial sector, Credit-Rating anticipates in 2009 further decline in asset quality, significant problems with liquidity in certain financial institutions, limited capacity for refinancing external debts, decreasing confidence among market participants, outflow of cash from the banking system, and rising NBU`s interference in banks` activities (temporary administrations). This will spur up forced sale of banks, and, consequently, consolidation of the banking system due to mergers and liquidation processes.
Analysis of activity of Ukraine`s banking system in 4Q2008 and outlooks for 2009
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.ua
Denis Rudenko
DRudenko@credit-rating.ua
