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11.10.2007
Credit-Rating rates EUROGASBANK at uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned Kiev-based EUROGASBANK OJSC (`Bank`)a long-term credit rating of uaBB. In the course of analysis Credit-Rating considered Bank`s financial statements for February-June 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.
Factors maintaining the credit rating
- Bank`s lucrative performance since its foundation coupled with its adequate stock capitalization.
Factors constraining the credit rating
- The Bank does not have a branch network and card segment, which coupled with 6-month track record, small number of clients and expanding large systemic banks hampers significantly the achievement of Bank`s strategic goals.
- Extreme concentration of Bank`s loan portfolio, which may negatively affect Bank`s profitability in case of complications with even a small number of loans.
- Extreme concentration of Bank`s resource basis on principal customers rising up the risks of Bank`s liquidity.
- The Bank`s risk management is infant and requires 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
