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14.06.2007
Ukrainian Professional 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 Kiev-based Ukrainian Professional Bank OJSC (Bank). In the course of analysis Credit-Rating used Banks financial statements for 2003-2006 and 1Q2007 as well as other inside information furnished by the Bank.
The uaBBB issuer rating reflects Banks 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 rating. The plus (+) or minus (-) modifier denotes ratings relative status within major categories.
Factors maintaining the credit rating:
- Rapid growth in Banks key balance indicators during the past year, allowing the Bank to have climbed 11 notches in NBUs (National Bank of Ukraine) ranking by volume of net assets achieving the 65th place (as of Apr. 1, 2007).
- High Banks liquidity and capitalization, much exceeding those averages of Ukrainian banking system.
- The specific gravity of overdue debts in Banks client loan portfolio amounted to 0.45% as of Apr 1, 2007.
Factors constraining the credit rating:
- High concentration of the Banks resource basis, specifically the debt towards 20 biggest creditors amounted to 43.12% of overall liabilities as of Apr. 1, 2007, with 10 biggest client deposits amounting to 17% of clients funds.
- High concentration of Banks loan portfolio on borrowers entailed by the Banks trending towards certain industries, namely the wholesale trade and wholesale trade broking, resulting in 37.03% of the loan portfolio.
- Banks 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
