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22.10.2007
Credit-Rating rates Ukrainian Professional Bank`s upcoming issue at uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH50m 2-year registered coupon bonds (C and D series) issued by Kiev-based Ukrainian Professional Bank OJSC (`Bank`) a long-term credit rating of uaBBB. In the course of analysis Credit-Rating considered Bank`s financial statements for 2003-2006 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
- Rapid growth in Bank`s key figures during the past year, which enabled the Bank to advance 9 grades in NBU`s (National Bank of Ukraine) ranking by net assets and to achieve 63 rd position as at July 1, 2007.
- High Bank`s liquidity and capitalisation indicators, which exceed significantly those averages of the national banking system.
- The specific gravity of overdue debts in Bank`s loan portfolio accounts for 0.72 per cent as at July 1, 2007.
Factors constraining the credit rating
- The Bank`s loan portfolio is highly concentrated on primary counterparts, this fact may negatively affect Bank`s profitability in case of complications with even a small number of loans; the Bank also tends to crediting companies which operates in certain businesses, namely wholesale trade and mediating in wholesale trade, which takes over 40 per cent of the Bank`s loan portfolio.
- The Bank`s resource basis is concentrated on primary counterparts, in fact Bank`s debts towards its 20 biggest creditors accounts for over 50 per cent of Bank`s liabilities, with funds of 10 biggest depositors making up over 40 per cent of Bank`s deposit customer portfolio.
- Bank`s underdeveloped branch network and card segment, coupled with the fact that big systemic banks would augment their market positions, hampers Bank`s achieving its strategic goals.
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
