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17.09.2007
Interbank Commercial Bank assigned uaBB+ credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of uaBB+ (uaBB plus) long-term credit rating to Kiev-based Interbank Commercial Bank OJSC (`Bank`). In the course of analysis Credit-Rating considered Bank`s financial statements for 2002-2006 and 1H2007 as well as other inside information furnished by the Bank.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories .
Factors maintaining the credit rating
- The structure of Bank`s incomes has enhanced as compared to the previous year, in fact the share of interest and commission gains in overall Bank`s incomes has increased to 92% in 1H2007 from 61% in 1H2006.
- The share of overdue and doubtful debts is stably low, remaining below 0.1% of Bank`s loan portfolio as of July 1, 2007.
- The Bank enjoys a significant experience in money-market and in securities market.
Factors constraining the credit rating
- The concentration of the Bank`s loan portfolio may negatively affect Bank`s profitability in the event of problems even with insignificant number of loans, specifically 20 biggest loans account for over 75% of the Bank`s loan portfolio.
- The Bank adheres to a risky credit policy, in fact the ratio of the reserves for the granted loans to Bank`s loan portfolio makes up a. 1%, with the share of real estate and cash deposits in the securitization structure not exceeding 50%.
- Bank`s poor performance indicators over the past year, specifically those of net interest and of performance ratio.
- Dependency of Bank`s resource basis upon major creditors, in fact the funds of 20 biggest creditors account for over 50% of Bank`s liabilities as of July 1, 2007.
- Bank`s exposure to loss of its market share provided that big systemic banks would increase their share on the market.
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
