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27.06.2007
Promekonombank JSCB 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 Donetsk-based Promekonombank Joint-Stock Commercial Bank (the Bank). In the course of analysis Credit-Rating Agency used the Banks financial statements for 2002-2006 and 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 of an obligor 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. The plus (+) or minus (-) modifier denotes ratings relative status within major categories.
Factors maintaining a credit rating:
- The assets and liabilities are balanced in terms of redemption and currencies;
- Diversification of the resource base by key creditors: as of April 01, 2007, the cash of the 20 largest creditors amounted to 23.86% of the banks liabilities;
- Most of the financial indices, which characterize key aspects of the banks activity, have an acceptable level for the banking system.
Factors constraining a credit rating:
- The high concentration of the credit portfolio by borrowers: as of April 01, 2007, the 20 largest loans amounted to 41.2% of the client credit portfolio;
- In recent years, the bank had a lower development rate as compared to average rates for the Ukrainian banking system;
- The exposure of the bank to loss of its market share if large national banks expand their presence in the banking 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
