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05.10.2007
Credit-Rating rates Universal Bank for Development and Partnership and its issue at uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned Kiev-based Universal Bank for Development and Partnership OJSC (Bank) and its UAH70m 5-year issue of registered coupon bonds (C series) a long-term credit rating of uaBBB. In the course of analysis Credit-Rating considered Banks 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
- Sufficient Banks capitalization with the equity growth exceeding growth in Banks assets, which bolsters surge in standards for capital adequacy.
- Banks performance indicator has remained stably high during the past few years, in fact it accounted for 283.76 per cent as of July 1, 2007.
Factors constraining the credit rating
- The specific gravity of negatively classified loans in Banks loan portfolio amounted to 56 per cent as of July 1, 2007, with 97 per cent of them being below-standard debts.
- High concentration of Banks loan portfolio on certain borrowers, which is entailed by Banks focusing on crediting corporate businesses, specifically 20 biggest loans account for 50+ per cent of Banks loan client portfolio as of Jul. 1, 2007.
- Banks insufficient information openness and transparency.
- Banks 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
