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07.03.2008
Credit-Rating rates Plus Bank at uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaBBB to Ivano-Frankivsk-based Plus Bank 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 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 may get necessary backing in case of need from its primary shareholder, the Poland-domiciled Getin Holding financial group, which incorporates two banks, an insurance company, and several financial and leasing companies.
- Low specific gravity of overdue and doubtful loans in Bank`s loan portfolio, namely 0.28 percent as of Oct. 1, 2007.
- The diversification of the Bank`s loan portfolio has improved significantly, in fact the loans granted for 20 biggest borrowers account for 30 percent of the portfolio. The Bank`s resource base has also enhanced noticeably: as of Oct. 1, 2007 the funds of 20 biggest lenders make up 12.2 percent of Bank`s liabilities.
Factors constraining the credit rating
- Bank`s ambitious expansion plans, which envisage risky credit policy, namely cash (blank) lending, accompanied by almost 25x rise in assets and 9.5x in authorized stock occurred in the past 3 years.
- The Bank`s management system requires further enhancements.
- Bank`s underdeveloped branch network and card segment, which may hamper Bank`s achievement of its strategic goals provided that big systemic banks would further augment their market positions.
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 Communication Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
