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09.08.2007
Cambio Universal Commercial 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 Cambio Universal Commercial Bank LLC (`Bank`). In the course of analysis Credit-Rating considered Bank`s financial statements for 2004-2006 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. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating:
- Bank`s rapid growth during 2004-2006, advancing to 97 th as of Jan.1, 2007 from 139 th grade as of Jan.1, 2005 in NBU`s (National Bank of Ukraine) ranking by size of net assets.
- Surge in number of Bank`s clients, both entities and individuals, primarily in loan programs, has contributed to decrease in loan portfolio concentration, in fact the specific gravity of 10 biggest loans in Bank`s loan portfolio declined by almost 5 p.p. amounting to 19.2% of the portfolio as of Jan.1, 2007.
Factors constraining the credit rating:
- Dependency of Bank`s resource basis upon principal creditors, in fact the specific gravity of funds of 20 biggest creditors in Bank`s liabilities amounted to 49.4%. Two thirds of the Bank`s deposit portfolio account for funds of legal entities, with its concentration on depositors being rather high in fact almost 41% of the Bank`s deposit portfolio accounts for 10 deposits.
- 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
