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13.11.2007
Credit-Rating: National Standard Bank assigned uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBB to Kiev-based National Standard Bank Commercial Bank OJSC (`Bank`). In the course of analysis Credit-Rating considered Bank's financial statements for 2002-2006 and 1H2007 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
- The Bank`s key figures has been growing starting from 2003 year-beginning, which enabled the Bank to climb 41 positions in the NBU`s (National Bank of Ukraine) ranking by size of net assets having achieved 92nd rank (as of Jul.1, 2007).
- Low specific gravity of overdue and doubtful debts in the Bank`s loan portfolio.
Factors constraining the credit rating
- Bank`s underdeveloped branch network and card segment, which may hamper achievement of Bank`s strategic goals provided that big systemic banks will further augment their market positions.
- High customer concentrations on both sides of the Bank`s balance sheet, which results in Bank`s dependency upon financial state of low number of its customers and increases the liquidity risks.
- The Bank`s assets and liabilities are unbalanced on their redemption terms.
- The Bank`s risk management is currently infant requiring further enhancements.
- Bank`s ambitious expansion plans.
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
