print
11.06.2007
Bank Kyiv assigned uaBBB credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBBB long-term credit rating to Kiev-based Kyiv Joint-Stock Commercial 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 issuer 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.
Factors maintaining the credit rating
- Low dependency of Bank`s recourse basis upon main creditors, in line with the good diversification of its loan portfolio.
- Stability of the Bank`s resource basis and low dependency of the Bank upon interbank market.
- Rapid growth of the Bank`s branch network over the past 3 years in line with the retained efficiency of Bank`s performance, in fact the number of Bank`s outlets has grown by 34 since 2003, and as of Jan. 1, 2007 the Bank`s network embraces 11 affiliates and 76 outlets in different regions of Ukraine.
Factors constraining the credit rating
- Bank`s capitalization is lower than that average of Ukraine`s banking system, specifically the securitization of Bank`s active operations and of credit and investment risks with the equity amounted to 10.97% and 13.32% respectively as of Jan. 1, 2007; the standards of adequacy of the regulatory stock are on the extreme level.
- Bank`s acceptance of large credit risks, in fact the figures of big credit risks have been approaching the extreme level over 2006, being much higher than that average of Ukraine`s banking system.
- Growth in overdue and doubtful credits, in fact the specific gravity of overdue credits in Bank`s loan portfolio grew by 3.08 p.p. having amounted to 4.7% as of Jan. 1, 2007.
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
