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10.08.2007
Kyivska Rus 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 Kyivska Rus Joint-Stock Bank (`Bank`). 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:
- The Bank operates a widespread branch network and has a developed card segment, which allows the Bank to compete other banks positioning themselves as systemic and universal.
- The customers` funds are well diversified on businesses, in fact 37.58% of customers` funds account for 3 biggest industries.
- The majority of Bank`s key figures are on adequate level for the national banking system.
Factors constraining the credit rating:
- Low Bank`s capitalization coupled with growth in assets exceeding those of Bank`s equity, which led to decrease in standards of Bank`s capital adequacy.
- Bank`s loan portfolio is highly concentrated on certain businesses, specifically 79.16% of the loan portfolio accounts for 3 biggest industries coupled with Bank`s tendency to take big credit risks with the standard for big credit risks 2.3x exceeding that average of the national banking system.
Information on all 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
