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19.11.2007
Credit-Rating: BM Bank`s upcoming bond issue assigned uaBBB credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of uaBBB long-term credit rating to upcoming UAH55m 3-year issue of registered interest bonds (B-C series) by the Kiev-based BM Bank LLC (`Bank`). In the course of analysis Credit-Rating considered the Bank`s financial statements for 2006-3Q`s 2007, 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:
- Support provided by the Bank`s owner (Russia-domiciled Bank of Moscow OJSC), which is one of the 5 leading Russian banks.
- The majority of the Bank`s indicators are on adequate level for national banking system.
Factors constraining the credit rating:
- Extremely high concentration of Bank`s loan portfolio, which may negatively affect the Bank`s profitability in the event of difficulties with even insignificant number of loans and the cash attracted from separate counterparties, causes the Bank`s dependency on financial positions of the clients and increases the liquidity risk;
- Absence of the regional network, insufficient development of the card segment and low number of the clients hamper the achievement of the Bank`s strategic goals if big systemic banks will further augment their market positions;
- The Bank`s risk management is currently infant requiring further enhancements.
Information on all the credit ratings assigned in accordance with the National Rating Scale may be found in the 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
