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23.08.2007
Upcoming bond issue by Ukrgasbank OJSB assigned uaA credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine, has today announced the assignment of uaA long-term credit rating to UAH200m 5-year issue of registered interest bonds (D and E series) by Ukrgasbank OJSB (`Bank`). The agency has also upgraded from uaA- (uaA minus) to uaA the long-term credit rating of Ukrgasbank OJSB and the long-term credit rating assigned to UAH100m 5-year issue of interest bonds (A series). In the course of analysis, Credit-Rating considered Bank`s financial statements for 2003-2006 and 1Q2007 as well as other inside information furnished by the company
An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions.
Factors maintaining a credit rating:
- Fast development of the Bank over the past years. Since the year 2006, assets increased by 2.57 times to UAH 6.15 billion as of July 01, 2007; credit and investment portfolio and the Bank`s equity increased by UAH 3.18 billion and UAH 401.9m respectively; during 1H2007 net income amounted to UAH 40.2m and exceeded the 2006 net income;
- High quality of the Bank`s credit portfolio and its diversification on borrowers (share of bad debts and doubtful debts in the client credit portfolio decreased by two times over the past year and was 1.19% as of July 01, 2007; in the fact the share of the 20 biggest loans was less than 30% of the Bank`s client credit portfolio);
- Improvement of the resource diversification on the key directions: cash attraction by issuing debt securities, cash attraction from international organizations and client cash diversification by separate creditors (cash of the 20 biggest creditors amounts to 30% of the Bank`s liabilities);
- Improvement of the market positions: from the beginning of 2006, total number of the bank`s clients increased by 35.2% and was more than 350 000 clients as of January 01, 2007; the regional network increased by 99 territorial departments and equalled to 220 points of sale in 22 regions of Ukraine and the Crimea.
Factors constraining a credit rating:
- High volume of investments made in the securities of issuers with speculative ratings of the construction industry (as of July 01, 2007, the volume of investments made in the securities was two thirds of the Bank`s equity).
Information on all the credit ratings, assigned in accordance with the Ukrainian National Scale, may be found in the 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
