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21.01.2009
Credit-Rating restores Nadra Bank`s rating at uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it restored at uaBB the long-term credit rating assigned to Kiev-based Nadra Commercial Bank OJSC (`bank`). The rating outlook is developing. The rating was suspended on September 26, 2008 due to absence of information to be submitted by the bank to the agency.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.
Developing outlook indicates that the rating can be changed in the course of the year.
Factors maintaining the credit rating
- The diversification of bank`s resource base on primary counterparties.
- Diversification of the loan portfolio on primary borrowers and types of businesses.
- Low specific gravity of overdue and doubtful debts in bank`s customer loan portfolio.
Factors constraining the credit rating
- The deteriorated bank`s solvency, which led to Bank`s failure in meeting its certain obligations. Today the bank`s solvency is maintained with the funds obtained from the NBU on the terms of refinancing, which amount is in excess of 3x of the bank`s equity.
- Bank`s dependency upon inter-bank resources under adverse environment in the market.
- Low diversification of securities portfolio, which exposes the bank to market risks.
- Strengthened impact of external factors on the financial market and declined business activities in certain economy sectors, as well as large amount of loans denominated in foreign currency may result in eroded solvency of certain bank`s borrowers under devaluating national currency and may negatively affect bank`s liquidity and capitalization.
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.ua
