print
16.01.2008
Credit-Rating assigns Megabank`s bond issue uaA-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaA- (uaA minus) to UAH200m 3-year coupon bonds (E-F series) issued by Kharkiv-based Megabank OJSC (`Bank`). In the course of analysis Credit-Rating considered Bank`s financial statements for 2002-2006 and 9M2007 as well as other inside information furnished by the Bank.
An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The Bank has designed and currently operates a utilities services payment system, which contributes to Bank`s diversification of incomes and to development of its retail segment (the clientele of the General accounting centre reached 1.7m customers as of Oct. 1, 2007)
- The Bank`s sufficiently developed branch network and card segment and extension of its sales channels in Ukrainian regions bolsters Bank`s further development and improvement in its key figures.
- Enhanced quality of the Bank`s loan portfolio (the specific gravity of overdue and doubtful indebtedness in the portfolio ebbed by 3.5 p.p. in the period from Jan. 1, 2006 to Oct. 1, 2007) accompanied by improved diversification of the Bank`s resource base by funds attraction segments.
Factors constraining the credit rating
- High level of concentrations in the Bank`s loan portfolio on principal borrowers, in fact over 170 per cent of the 1st tier capital account for 20 largest borrowers), which, coupled with low reserves attributable to loan operations, may negatively affect Bank`s liquidity and capitalization.
- The Bank`s business procedures and risk management require further improvements, which is associated with Bank`s expansion.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
