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08.08.2007
Lviv 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 Lviv-based Lviv Joint-Stock Commercial Bank CJSC (`Bank`). The agency has also assigned a long-term credit rating of uaBBB to the upcoming UAH47m 2-year Bank`s issue of registered coupon bonds (A series). 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:
- In case of need the Bank`s owners may provide necessary support to the Bank, which can improve Bank`s capitalisation and fosters its development.
- The securitization of credit risks and of operations with the equity is higher than that average in Ukraine.
- High Bank`s performance indicators during the past few years.
- The majority of Bank`s key figures are on adequate level for the banking system.
Factors constraining the credit rating:
- High concentration of Bank`s loan portfolio and of its resource basis on primary counterparts, in fact 20 biggest loans account for over 52% of the loan portfolio, with 10 biggest deposits making up roughly 36% of the total deposit portfolio.
- Discrepancy in assets and liabilities by terms to redemption.
- 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
