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15.06.2007
AvtoZAZbank 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 AvtoZAZbank Joint-Stock Bank (Bank). In the course of analysis Credit-Rating used Banks financial statements for 2002-2006 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 ratings. The plus (+) or minus (-) modifier denotes ratings relative status within major categories.
Factors maintaining the credit rating:
- The specific gravity of overdue and doubtful debts in client loan portfolio has amounted to 0.14%, with the specific gravity of doubtful credits in the credit and investment portfolio not exceeding 0.5% in the period under analysis.
- Banks adequate capitalization allowing for further growth, specifically the adequacy of Banks regulatory and fixed stock amounted to 18.29% and 12.53% respectively, exceeding those averages of Ukrainian banking system.
- The Banks assets and liabilities are balanced on redemption terms and on currencies.
Factors constraining the credit rating:
- Dependency of the Banks resource basis upon certain creditors (the funds of 20 biggest creditors amounted to 58.5% of the Banks overall liabilities as of Jan. 1, 2007).
- High concentration of the Banks loan portfolio on borrowers, in fact 20 biggest loans have amounted to 52.3% of the regular indebtedness on credits.
- 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
