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18.06.2007
Megabank assigned uaA- credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaA- (uaA minus) long-term credit rating to Kharkiv-based Megabank 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 uaA long-term rating reflects strong Banks capacity to pay its obligations in the Ukrainian financial market environment, it may, though, be more vulnerable to adverse changes in economic, financial and business conditions than obligors rated uaAA and uaAAA. The plus (+) or minus (-) modifier denotes ratings relative status within major categories.
Factors maintaining the credit rating:
- The Bank has successfully diversified its activity and developed its retail business, specifically the Bank has created and is currently operating the general system of utility service payments allowing to diversify the income sources and to develop the retail business (2006 saw 134K increase in the number of accounts in General accounting centre to 1.63m as of Jan. 1, 2007, with the number of organizations operating with the centre having increased by 56 in 2006. The overall volume of payments processed by the centre exceeded 17.3m over 2005-2006).
- The Banks assets grew 5.69x having reached UAH1.34bn during 2002-1Q2007 with this growth being proportional and balanced.
- The specific gravity of doubtful debts in Banks credit and investment portfolio amounted to 0.6%, with the overdue credits amounting to 1.15%.
Factors constraining the credit rating:
- Banks exposure to risks incurred under its ambitious strategy.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be 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
