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19.07.2007
East European Bank 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 Kiev-based East European Bank Joint-Stock Commercial Bank (Bank). In the course of analysis Credit-Rating considered Bank's financial statements for 2004-2006 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:
- The Bank's performance indicator have grown to 159% (as of Jan. 1, 2007) from 123% (as of Jan.1, 2004) over the past 3 years;
- Moderate concentration of client cash on businesses, in fact the cash's share of legal entities in each of the businesses does not exceed 9% of Bank's liabilities as of Jan.1, 2007.
Factors constraining the credit rating:
- High concentration of the Bank's loan portfolio, in fact the specific gravity of 20 biggest loans accounted for 57% of the Bank's client loan portfolio having grown 12.6 p.p. during 2006;
- Bank's exposure to loss of its market share provided that big systemic 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 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
