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21.11.2007
Credit-Rating: FINANCIAL INITIATIVE Bank`s upcoming bonds assigned uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBBB to UAH250m 5-year registered coupon bonds (B series) to be issued by Kiev-based FINANCIAL INITIATIVE Commercial Bank LLC (`Bank`). In the course of analysis Credit-Rating considered Bank`s financial statements for 2005-2006 and 1Q-3Q2007 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
- The Bank is actively supported by its owners, which enabled the Bank to far advance its key figures since 2005 year-beginning and to enter the 2nd group of banks by net assets according to the NBU`s (National Bank of Ukraine) classification.
- The majority of Bank`s financial indicators remain on adequate level for the national banking system.
Factors constraining the credit
- Modest Bank`s experience in the Ukrainian financial market coupled with Bank`s underdeveloped branch network and card segment, which impairs Bank`s capacity in achievement of its strategic goals.
- High customer concentrations on both sides of the Bank`s balance sheet, which makes the Bank dependant upon financial conditions of a low number of its customers and increases liquidity risks.
- The Bank`s assets and liabilities remain unbalanced in certain currencies by redemption terms.
- The Bank does not have a formalized risk management system.
Information on all credit ratings assigned in accordance with the National Scale may be found in REUTERS, BLOOMBERG and FTN MONITOR information systems.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
