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21.12.2010
Credit-Rating rates UKRINBANK JSC at uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaBBB to Kiev-based UKRINBANK JSC (‘bank’). The outlook on the rating is developing. In the course of the rating procedure Credit-Rating considered bank’s financial statements for 2005-2009 and 9M2010 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.
Developing outlook indicates high probability for the rating’s change in the course of the year.
Factors maintaining the credit rating
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Increased volume of long-term financing with funds raised as subordinated debt, coupled with expected increase of the bank’s authorized stock.
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Bank’s assets and liabilities are properly balanced by their due terms.
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Diversification of the loan portfolio by types of business.
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Diversification of the bank’s resource base by major lenders.
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The bank operates a wide-spread branch network, which contributes to sustaining customer base and the bank’s competitive standing.
Factors constraining the credit rating
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High concentrations in the loan portfolio by major borrowers under low level of provisions for lending transactions, which may negatively affect bank’s liquidity and capitalization.
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Bank’s loss-generating performance combined with high specific gravity of overdue indebtedness in the customer loan portfolio.
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Large amount of funds attracted from the National Bank of Ukraine as refinancing.
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Small portion of free capital coupled with high volume of general administrative expenditures, which weigh on bank’s performance efficiency indicators.
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Retaining adverse environment in the financial market and real sector of economy, combined with high amount of loans granted in foreign currencies, which may undermine solvency of certain bank’s borrowers and weigh on bank’s liquidity and capitalization ratios.
Information on all credit ratings assigned in accordance with the National Rating Scale may be found in THOMSON REUTERS and BLOOMBERG information systems.
For more information, please contact:
Department of
Information and Communications
Sergey Rozumyak +38044490 25
50
SRozumyak@credit-rating.com.ua
Denis
Rudenko
DRudenko@credit-rating.ua
