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27.10.2009
Credit-Rating rates EUROGASBANK OJSC at uaBBB- (provisional)
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaBBB- (uaBBB minus) (provisional) to Kiev-based EUROGASBANK OJSC (‘bank’) carrying stable outlook. In the course of analysis Credit-Rating considered bank’s financial statements for February-December 2007, 2008, and 1Q-3Q2009, and its other inside information. Earlier the bank’s long-term credit rating was at uaBB+ with positive outlook.
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).
Provisional credit rating is a credit rating assigned with consideration of probability of events, which may substantially affect the creditworthiness of the entity rated. At the time the rating was assigned this event was increase in the bank’s authorized stock, with the funds currently accounted for contribution to unregistered authorized stock. Further, upon the registration of new edition of bank’s articles of association, Credit-Rating is planning to remove the provisional denominator.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
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The anticipated increase in bank’s authorized equity and rise in bank’s clientele under financial crisis.
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Modest amount of overdue payments on loans.
Factors constraining the credit rating
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Extreme concentration of the customer loan portfolio on the bank’s key borrowers under low reserves for lending transactions, which may negatively affect bank’s liquidity and capitalization.
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High concentration of bank’s resource base, which raises the liquidity risks.
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Low diversification of bank’s securities portfolio, which exposes the bank to market risks.
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Growing impact of external factors on the financial market and decrease in business activities in certain industries, combined with significant amounts of loans granted in foreign currencies, which, under depreciating national currency, may negatively affect solvency of certain borrowers and bank’s 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 +38044490 25 50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
