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08.06.2007
Faktorial-Bank assigned uaBBB- credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBBB- (uaBBB minus) long-term credit rating to Kharkiv-based Faktorial-Bank Joint-Stock Bank (`Bank`). In the course of analysis Credit-Rating used Bank`s financial statements for 2002-2006 as well as other inside information furnished by the Bank.
The uaBBB issue rating reflects Bank`s adequate capacity to timely and in full meet its commitments on the obligations in the Ukrainian financial market environment. There is, though, a higher vulnerability to the effect of adverse changes in business, financial and economic conditions as compared to obligors with higher ratings. The + and - modifiers denote rating`s relative status within major categories.
Factors maintaining the credit rating
- A possibility of getting a financial help in case of need from the UPEK group of companies the Bank is incorporated with.
- Bank`s cooperation with the retail networks and development of own branch network allows for its dynamic growth in retail.
Factors constraining the credit rating
- Low Bank`s ROA and ROE in comparison with the national banking system, with these indicators having amounted in 2006 to 0.407 and 3.251 respectively.
- Unbalanced growth in main assets and liabilities` items during the period under study.
- Uncertainty in Bank`s mid-term development strategy.
- Bank`s exposure to loss of its market share provided that big national banks would increase their share on the market.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found in the REUTERS, BLOOMBERG and FTN MONITOR information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
