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12.03.2008
Credit-Rating rates Innovational Industrial 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- (uaBBB minus) to Kharkov-based Innovational Industrial Bank OJSC (`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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Factors maintaining the credit rating
- Low specific gravity of overdue and doubtful debts in Bank`s loan portfolio, namely 0.39 percent as of Oct.1, 2007.
- Bank`s key figures remain on adequate level for the national banking system.
Factors constraining the credit rating
- Low level of concentrations in Bank`s loan portfolio on its principal borrowers (over 570 percent of the 1st tier capital account for 20 biggest borrowers), which may negatively affect Bank`s liquidity and capitalization accompanied by low level of reserving.
- The Bank`s assets and liabilities are unbalanced by their due terms, which raises the liquidity risks.
- The Bank`s risk management requires further enhancements.
- The Bank is exposed to loss of its market positions, which is associated with its restrained capacity for customers luring, and which makes the Bank dependant upon financial state of a low number of its customers.
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
