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20.06.2007
Upcoming bond issue by BM Bank 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 upcoming UAH45m 3-year issue of registered coupon bonds by Kiev-based BM Bank LLC (`Bank`). In the course of analysis Credit-Rating considered Bank`s financial statements for 2006-1Q2007, as well as other inside information furnished by the Bank.
A credit rating of uaBBB is an investment grade rating, indicating an ADEQUATE CAPACITY to pay both interest and principal on the given debt liability in the Ukrainian financial market environment. This rating indicates a level of creditworthiness that is more susceptible to adverse changes in commercial, financial and economic conditions than debt obligations with higher investment grade ratings .
Factors maintaining the credit rating
- The primary owner of the Bank is Russia-domiciled Bank of Moscow OJSC, which is one of the leading 5 Russian banks.
- Bank`s rapid growth since its foundation, specifically the Bank`s assets have grown 5.25x, coupled with the5.3x growth in the credit and investment portfolio. The Bank`s equity amounted to UAH88.46m as of Apr. 1, 2007.
- The majority of the Bank`s indicators are on adequate level for the national banking system.
Factors constraining the credit rating
- The Bank has operated during 1 1/2-year period, which prevents from forecasting the trends of its further development.
- High Bank`s dependency upon major creditors.
- High concentration of Bank`s loan portfolio on borrowers.
- Absence of regional network and insufficient development of card segment impairs the Bank`s competitiveness to other banks, which position themselves as systemic and universal.
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
