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03.08.2007
FINANCIAL INITIATIVE Commercial Bank 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 FINANCIAL INITIATIVE Commercial Bank LLC (Bank). Credit-Rating has also assigned a long-term credit rating of uaBBB to Bank's UAH50m 5-year issue of registered coupon bonds. In the course of analysis the agency considered Bank's financial statements for 2005-2006 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 Bank is provided with a strong support by its owners, which allowed the Bank to have significantly improved its key figures since 2005 year-beginning and to achieve a place in the 2 nd banking group by assets size according to the NBUs (National Bank of Ukraine) classification;
- The majority of the Bank's performance indicators are on adequate level for the banking system.
Factors constraining the credit rating:
- The Bank has insignificant experience in Ukrainian financial market;
- The Bank does not have a formalized system of risk management;
- Unbalanced asset and liabilities structure in certain currencies by redemption terms;
- High concentration of the Bank's loan portfolio and of resource basis on primary counterparts.
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
