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29.10.2007
Credit-Rating rates TAS-Businessbank at uaBBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned Kiev-based TAS-Businessbank Joint-Stock Commercial Bank (`Bank`) a long-term credit rating of uaBBB- (uaBBB minus). In the course of analysis Credit-Rating considered Bank`s financial statements for 2005-2006 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 may be provided with support from its primary owner in case of need.
- The Bank`s performance indicators have grown in the last year, namely the Bank`s performance indicator made up 155 per cent as of Jul. 1, 2007.
- The Bank has significantly augmented its positions since changes in its shareholder structure.
- Bank`s information explicitness and transparency.
Factors constraining the credit rating
- High concentrations in Bank`s loan portfolio on primary borrowers, in fact a. 50 per cent of the loan portfolio account for 20 biggest borrowers as of July 1, 2007.
- Poor quality of Bank`s loan portfolio, in fact the specific gravity of overdue and doubtful debts in Bank`s loan portfolio exceeds 5 per cent (23.3 per cent as of 2006 year-beginning).
- The share of unprofitable assets exceeds 20 per cent in Bank`s asset structure.
- Bank`s key figures have remained volatile in the past 5 years (Bank`s detrimental performance in 2005 and 1H2006).
- The Bank has underdeveloped branch network and card segment, which may hamper Bank`s capabilities in achieving its strategic goals, provided that big systemic banks would augment their market positions.
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
