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10.12.2007
Credit-Rating assigns Zembank`s upcoming bond issue uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBBB to UAH50m 5-year registered coupon bonds (A series) to be issued by Kharkiv-based Zembank Joint-Stock Commercial Bank (`Bank`). In the course of analysis Credit-Rating considered Bank`s financial statements for 2003-2006 and 9M2007 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 enjoys backing from its primary owner, namely the biggest Ukraine`s insurance company, which has provided the Bank with the capital injections necessary for the business expansion.
- The Bank`s performance indicator has grown to 214.27 per cent as of Oct. 1, 2007 from 161.81 per cent as of Jan.1, 2003 in the past 5 years.
- The specific gravity of overdue and doubtful debts in the Bank`s customer loan portfolio makes up 0.54 per cent as of Oct.1, 2007.
- The majority of Bank`s indicators are on adequate level for the national banking system.
Factors constraining the credit rating
- High customer concentration on both sides of the balance sheet, which makes the Bank dependant upon a low number of its customers and increases the liquidity risks.
- Bank`s risk management requires further enhancements.
- Bank`s exposure to loss of its market share provided that big systemic banks would augment their positions on the market.
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
