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14.05.2010
Credit-Rating upgrades Kyiv JSCB to uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBB from uaBB- (uaBB minus) the long-term credit rating assigned to Kiev-based Kyiv Joint-Stock Commercial Bank (‘bank’). The outlook on the rating is developing. To revise the rating Credit-Rating considered bank’s financial statements for 2008-2009 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.
Developing outlook indicates that there is a high possibility for a rating to be changed in the course of the year.
Factors maintaining the credit rating
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A financial backing from the government (increase of stock) and from the National Bank of Ukraine (providing and prolongation of loans, which remain a considerable portion of bank’s resources) that resulted in enhanced bank’s solvency and repayments of overdue obligations.
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Resumed cooperation with payment systems (card segment) and possible development of sales channels (by cooperation with Ukrposhta outlets and other state-run companies), which may help retain and expand bank’s clientele.
Factors constraining the credit rating
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Negative track record (with cases of late repayment of obligations), which may negatively affect management of liabilities.
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Poor quality and concentration of customer loan portfolio by main borrowers, which may weigh on liquidity and capitalization ratios.
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Opacity with regard to the strategy of bank’s further development, including the fact that the government has not claimed any distinct plans on retaining its share in the bank in future.
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Retaining of operating and credit risks, which is prompted by constant processes of internal transformations (including changes in regulations and management team), and possible employment of the bank for funding a number of companies with neglecting bank’s interests.
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Retaining adverse environment in the financial market and real sector of economy which resulted in eroded borrowers’ solvency and weighs on bank’s figures.
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
