print
12.07.2007
Transbank 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 Kiev-based Transbank Joint-Stock Commercial Bank (`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 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 .
Factors maintaining the credit rating
- The past few years saw rapid expansion of the Bank`s branch network coupled with the growth in number of clients with the upward trend of Bank`s performance being retained.
- Balanced structure of assets and liabilities by redemption terms and by currencies.
- Bank`s key performance indicators remain on adequate level.
Factors constraining the credit rating
- Low Bank`s stock capitalization entailed by growth in assets, which exceeds Bank`s equity growth, thus calling forth the decrease in capital adequacy.
- High concentration of Bank`s loan portfolio on borrowers, in fact 20 biggest loans account for 45.24% of Bank`s 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
