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09.07.2007
Ukrprombank assigned uaA credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaA long-term credit rating to Kiev-based Ukrainskiy Promyshlennyi Bank (Ukrprombank) LLC (`Bank`). In the course of analysis Credit-Rating considered Bank`s financial statements for 2002-2006 and 1Q2007 as well as other inside information furnished by the Bank.
A credit rating of uaA is an investment grade rating, indicating a STRONG 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 uaAAA and uaAA ratings.
Factors maintaining the credit rating
- Bank`s growing operating activity during the past 3 years coupled with the retention of its adequate capitalisation and profitability during 2003-1Q2007, specifically the Bank`s net assets grew 7.3x to UAH7.34bn as of Apr. 1, 2007, the credit and investment portfolio grew 7.4x to UAH6.05bn, the balance stock grew 8.25x to UAH0.96bn with the net profit having risen 22.1x (UAH84.14m in 2006).
- Low dependency of the Bank`s resource basis upon major creditors, in fact the funds of 20 major creditors amounted to 15.5% of the Bank`s liabilities as of Apr. 1, 2007.
- The specific gravity of overdue and doubtful debts in the Bank`s client loan portfolio amounted to 0.33% as of Apr. 1, 2007.
- Bank`s developed branch network (26 affiliates and 224 outlets in all regions of Ukraine) and card segment allowing the Bank to compete other banks positioning themselves as systemic and universal.
Factors constraining the credit rating
- Over 75% of the Bank`s client loan portfolio is involved in two businesses, namely trade and real estate operations.
- Unbalanced ratio of entities and individuals in the structure of attracted and placed funds.
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
