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04.07.2007
Marine Transport Bank assigned uaBBB+ credit ratingMarine Transport Bank assigned uaBBB+ credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBBB+ (uaBBB plus) long-term credit rating to Ilyichevsk-based Marine Transport Bank OJSC (Bank). In the course of analysis Credit-Rating considered Banks financial statements for 2001-2006 and for January-February 2007, 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 the credit rating
- The Bank has a 13-year experience on the financial market, having achieved 44th place in Ukraines banking system by net assets (the 10th place in the third group of NBUs (National Bank of Ukraine) ranking. The Bank operates a developed branch network comprising of 158 outlets as of Jan. 1, 2007.
- The majority of the Banks key indicators are on the adequate level.
Factors constraining the credit rating
- The Banks assets and liabilities have been growing slowly over the past 5 years as compared to those of the banking system; specifically the Banks assets have grown 16% in 2006 with 59.1% growth of the banking system.
- The securitization of active operations and of credit and investment risks with the Banks equity has remained on the lower than banking systems level over the past 4 years.
- The ROA and ROE have declined to 0.439% from 1.695% and to 3.993% from 13.061% respectively.
- High specific gravity of doubtful and bad debts in loan operations, which have exceeded 5% during the past few years.
- Uncertainty in Banks development strategy entailed by possible change of its owners.
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
