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25.03.2009
Credit-Rating upgrades Eurogasbank OJSC to uaBB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBB+ (uaBB plus) from uaBB the long-term credit rating assigned to Kiev-based Eurogasbank OJSC (`bank`). The outlook on the rating is positive. To revise the rating Credit-Rating considered bank`s financial statements for February-December 2007 and full 2008 and its other inside information.
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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Factors maintaining the credit rating
- Bank`s sufficient capitalization, accompanied by its increasing clientele under financial crisis.
- Low share of overdue obligations on loans.
Factors constraining the credit rating
- Extreme concentrations in the customer loan portfolio on the principal borrowers under low reserve allocations for lending transactions, which may negatively affect bank`s liquidity and capitalization in case at least one borrower fails to meet its obligations.
- High concentrations in bank`s resource base, which raises the liquidity risks.
- The bank`s risk management requires further enhancements.
- Low diversification of the bank`s securities portfolio, which exposes the institution to market risks.
- Growing impact of external factors on the financial market and decrease in business activities in certain sectors of economy coupled with large amount of loans granted in foreign currencies, which, under depreciating national currency, may negatively affect solvencies of certain borrowers and 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
Denis Rudenko
DRudenko@credit-rating.ua
