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03.07.2007
Bond issue by 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 long-term credit rating to the UAH50m 3-year issue of registered coupon bonds (A, B series) by Kiev-based Ukrainian Professional Bank OJSC (`Issuer` or `Bank`). In the course of analysis Credit-Rating considered Bank`s financial statements for 2003-2006 and 1Q2007 as well as other inside information furnished by the Issuer.
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
- Rapid growth in Bank`s key balance indicators during the past year, allowing the Bank to have climbed 11 notches in NBU`s (National Bank of Ukraine) ranking by volume of net assets achieving the 65th place (as of Apr. 1, 2007).
- High Bank`s liquidity and capitalization, much exceeding those averages of Ukrainian banking system.
- The specific gravity of overdue debts in Bank`s client loan portfolio amounted to 0.45% as of Apr. 1, 2007.
Factors constraining the credit rating
- High concentration of the Bank`s 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 Bank`s loan portfolio on borrowers entailed by the Bank`s trending towards certain industries, namely the wholesale trade and wholesale trade broking, resulting in 37.03% of the loan portfolio.
- Bank`s 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
