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25.10.2007
Credit-Rating assigns Ukrinbank`s upcoming bond issue at uaBBB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH100m 3-year upcoming issue of registered coupon bonds (A series) by Kiev-based Ukrinbank JSC (`Bank`) a long-term credit rating of uaBBB+ (uaBBB plus). 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. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The Bank enjoys 18-year experience in the financial market operating a widespread branch network with a developed card niche and a stable client basis of legal entities, specifically the Bank`s branch network account for 30 representative offices and 98 outlets with its card niche comprising of a. 600 post terminals, 70 ATMs and 100 cash desks. The Bank is serving over 60K private and corporate customers.
- Bank`s sufficient capitalization contributing to its further expansion, specifically the standards of regulating and principal capital as of Apr. 1, 2007 made up 18.24 and 16.69 per cent respectively, which exceeds those averages in Ukrainian banking system.
- Diversification of Bank`s recourse basis and of its loan portfolio on certain customers, in fact the funds of 20 biggest customers account for 11.4 per cent of Bank`s liabilities with the share of 20 biggest loans in Bank`s loan portfolio making up 28.3 per cent.
Factors constraining the credit rating
- Poor quality of Bank`s loan portfolio, in fact the specific gravity of overdue and of doubtful indebtedness in Bank`s loan portfolio accounted for 6.17 per cent (8.16 per cent at 2006 year-beginning)
- High specific gravity of unprofitable assets.
- Bank`s exposure to loss of its market share provided that big systemic banks would increase their share 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
