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28.03.2008
Credit-Rating rates Golden Gate JSCB at uaBBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine, has today assigned a long-term credit rating of uaBBB- (uaBBB minus) to the Kharkov-based Golden Gate JSCB (`Bank`) and to upcoming UAH50m 5-year registered interest-bearing bond issue (A series). In the course of analysis Credit-Rating considered Bank`s financial statements for 2003-2007 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
- The Bank`s assets and liabilities are well balanced by terms of redemption;
- Bank`s key figures remain on adequate level for the national banking system.
- Bank`s transparency and openness.
Factors constraining the credit rating
- Concentration of the loan portfolio on primary borrowers (over 320% of the Tier I capital account for the 20 biggest borrowers) causes the Bank`s dependence on financial positions of the key clients and negatively affects the Bank`s liquidity and capitalization;
- Concentration of the resource base (as of 01 Jan 2008 assets of the 20 biggest creditors account for 50% of the liabilities) borrowers) limits the Bank`s financial stability and enhances the liquidity risk;
- Necessity to improve the risk management system;
- Absence of the organized development strategy;
- The Bank had low performance indicators over the past 5 years;
- The Bank is exposed to risk of loss of its market share due to the limited opportunities for client attraction and the increase of the competitiveness in the financial market of Ukraine.
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
