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30.11.2007
Credit-Rating assigns Dnister Bank uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBBB to Lviv-based Selyanskyi Commercial Bank Dnister `Bank`). 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.
Factors maintaining the credit rating
- The Bank`s resources are well diversified on its primary customers (the funds of 20 biggest creditors account for 28 per cent of the Bank`s liabilities as of Jul.1, 2007).
- The specific gravity of overdue and doubtful indebtedness in the Bank`s customer loan portfolio makes up 0.53 per cent as of Jul.1, 2007.
- The Bank`s key figures are on adequate level for the Ukrainian banking system.
- Bank`s information transparency and openness.
Factors constraining the credit rating
- The Bank suffers from insignificant volume of high-liquid assets and dependency on the interbank market, which both increases the liquidity risks.
- Low Bank`s stock capitalization and Bank`s tending to crediting businesses in certain sectors, whereas the standard for big credit risks exceeds 2.3x that average of the banking system.
- The Bank`s risk management requires further enhancements in the framework of the Bank`s development strategy.
- Bank`s exposure to loss of its market share provided that big systemic banks would augment their market positions.
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
