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19.09.2007
Hypobank 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 Hypobank Commercial Bank OJSC (`Bank`). In the course of analysis Credit-Rating considered Bank`s financial statements for 2006-2007 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 Bank has enjoyed profitable performance since its foundation, coupled with Bank`s adequate capitalization.
- Bank`s transparency and information openness.
Factors constraining the credit rating
- The Bank has operated over 9 months so far, which, coupled with absence of branch network, of card segment and low number of clients, and entailed by growing expansion of big systemic banks, complicates significantly the achievement of strategic goals.
- Extremely high concentration of Bank`s loan portfolio, which may negatively affect Bank`s profitability in the event of difficulties with even insignificant number of credits.
- Extremely high concentration of Bank`s resource basis on primary counterparts, which increases risks for Bank`s liquidity.
- Bank`s risk management is currently infant requiring further enhancements.
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
