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15.10.2008
Credit-Rating assigns Bank Renaissance Capital LLC`s upcoming bond issue 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 registered coupon bonds (series B, C) to be issued by Kiev-based Bank Renaissance Capital LLC (`bank`). The amount of the issue is UAH300m, due November 13, 2011. In the course of analysis Credit-Rating considered bank`s financial statements for 2006-2007 and 1H2008 and its other inside information.
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 from Renaissance group of companies, which funds account for significant part of bank`s resources.
- Bank`s moderate capitalization coupled with availability of cheap resources, which helps the bank maintain competitive positions in the market.
- Expansion of Bank`s sales channels, which contributes to the bank`s further development and enhancements in its financial indicators.
Factors constraining the credit rating
- Poor performance indicators accompanied by high administrative expenditures, which is prompted by short period of the bank`s activity and its aggressive development policy.
- The bank`s activities are concentrated exclusively in consumer lending, which is characterized with high level of risks and intensified regulator`s control.
- Bank`s deteriorated asset quality.
- Bank`s poor resource base and its high concentration on the primary borrowers.
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
