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13.06.2007
Tavrika Bank assigned uaBBB credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBBB lonug-term credit rating to Kiev-based Tavrika Joint-Stock Bank (`Bank`). In the course of analysis Credit-Rating used Bank`s financial statements for 2003-2006 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
- The Bank has operated on the market for 16 years, rapidly growing over the past few years (the Bank has climbed to 48th place in NBU`s (National Bank of Ukraine) ranking as of Jan. 1, 2007 from 57th place as of Jan. 1, 2003).
- High Bank`s ROA and ROE as compared to the national banking system, with these indicators amounting to 2.21% and 19.5% respectively (in comparison with those averages of the banking system of 0.41% and 3.25% respectively).
- The specific gravity of overdue and doubtful debts amounts to 0.21% of the client loan portfolio.
Factors constraining the credit rating
- The securitization of active operations and of credit and investment risks with the Bank`s equity has over the past 4 years been declining from 25% to 10.08% and from 28.08% to 10.47% respectively; the Bank`s authorized stock grew once in 2004 to UAH51.35m from 41.35m in this period.
- High concentration of the Bank`s loan portfolio (the standard of big credit risks 3.9x exceeds the banking system`s average) entailed by Bank`s trending towards certain industries, namely construction and real estate, amounting to 37.5% of the loan portfolio).
- 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
