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23.06.2009
Credit-Rating upgrades Bank of Cyprus OJSC to uaA-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaA- (uaA minus) from uaBBB the long-term credit rating assigned to Kiev-based Bank of Cyprus OJSC (bank). The outlook on the rating has been changed to stable. In the course of analysis Credit-Rating considered banks financial statements for 2007-2008 and 1Q2009 and its other inside information.
An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
- Backing from the banks principal owner, which enables the institution to maintain competitive standing in the market.
- Improved diversification of the banks customer loan portfolio by primary borrowers.
- Banks sufficient liquidity indicators under erosion in liquidity of the overall banking system.
- The banks assets and liabilities are properly balanced by their due terms.
Factors constraining the credit rating
- Deteriorated quality of the banks loan portfolio (the portion of overdue debts was recorded at 4.9% as at Apr. 1, 2009), which may weigh on the banks profitability indicators.
- High concentrations of the banks resource base by primary lenders, which constrains banks financial flexibility.
- Growing impact of external factors on the financial market and decrease in business activities in certain industries, which may negatively affect solvency of certain borrowers and weigh on banks financial indicators.
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
