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27.09.2007
Credit-Rating rates Zembank at uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned Kharkiv-based Zembank Joint Stock Commercial Bank (`Bank`) a long term uaBBB credit rating . 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 uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The Bank is majority-owned by the Ukrainian biggest insurance company, which has provided and may provide the Bank with the financial support in case of need.
- Bank`s key figures have grown over the past five years: Bank`s performance indicator made up 220 per cent as of July 1, 2007.
- The specific gravity of overdue and of doubtful debts in Bank`s customer loan portfolio accounted for 0.61 per cent as of July 1, 2007.
- The Bank`s key figures are on adequate level for the national banking system.
Factors constraining the credit rating
- High customer concentration on both sides of the balance sheet, specifically 50+ per cent of the Bank`s loan portfolio account for 20 biggest borrowers with 10 biggest deposits making up 44 per cent of Bank`s customer deposit portfolio.
- Bank`s risk management requires further enhancements.
- Bank`s exposure to loss of its market share provided that big systemic banks would augment their positions 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
