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16.07.2007
AVTOKRAZBANK assigned uaBBB- credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBBB- (uaBBB minus) long-term credit rating to Kremenchug-based AVTOKRAZBANK OJSC (Bank). In the course of analysis Credit-Rating considered 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 the credit rating:
- Banks balanced assets and liabilities by redemption terms and by currencies.
- Banks loan portfolio is not concentrated on certain borrowers coupled with its diversification on businesses.
- Banks key performance indicators are on the adequate level.
Factors constraining the credit rating:
- Growth rates of Banks assets exceed those of Banks equity.
- Concentration of Banks resource basis on major creditors and on businesses.
- Banks exposure to loss of its market share provided that big systemic banks would increase their share on the market.
- Infant Banks risk management requiring further enhancements.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found in 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
