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11.10.2010
Credit-Rating Upgrades UKRGASBANK JSB’s Bonds to uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it upgraded to uaBBB from uaBB the long-term credit rating assigned to coupon bonds (series A and series D, E) issued by Kiev-based UKRGASBANK JSB (‘bank’) for the amount of UAH100m and UAH200m respectively to the series stated. The outlook on the rating has been changed to stable. To revise the rating Credit-Rating considered bank’s financial statements for 1H2010 and its other inside information.
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.
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 bank has necessary financial backing from the Ukrainian government, which is the institution’s primary shareholder.
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Enhanced structure of the resource base, which has been prompted by increased authorized stock (by UAH1.9bn), prolongation of loans provided by the National Bank and rising amount of customer funds.
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Improved balance of assets and liabilities by its due terms.
Factors constraining the credit rating
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Low capitalization ratios under deteriorating quality of the bank’s assets.
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A significant portion of overdue debts.
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High concentrations in the loan portfolio by main borrowers.
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Retaining adverse environment in the financial market and real sector of economy which may undermine solvency of bank’s borrowers and weigh on 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
