print
25.03.2011
Credit-Rating rates Russian Standard Bank PJSC at uaBBB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned its long-term credit rating of uaBBB+ (uaBBB plus) carrying stable outlook to Kiev-based Russian Standard Bank PJSC (‘bank’). The agency has also assigned to the bank its bank deposit rating of ‘4’ (high strength). In the course of the rating procedure Credit-Rating considered bank’s financial statements for 2007-2010 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. 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.
The BDR of ‘4’ indicates that the bank is sufficiently reliable, yet being more vulnerable to impact of adverse commercial, financial and economic factors than banks bearing rating '5'. The probability of bank's failure to repay its deposit obligations is low.
Factors maintaining the credit rating
- In case of necessity the bank may get necessary backing from its core shareholder (as at Jan. 1, 2011 the bank’s equity capital and the funds attracted from the shareholder contribute to 65% of the bank’s liabilities).
- Diversification of the bank’s loan portfolio by key borrowers.
- High liquidity and capitalization ratios of the institution.
- Presence of a wide-spread branch network (the bank operates points of sale located in 117 municipalities), which secure a stable cash flow from the bank’s principal activity.
Factors constraining the credit rating
- Bank’s operations are concentrated exclusively in a high-risk segment of consumer lending.
- Low performance indicators displaying bank’s principal activity, which are weighed by high administrative expenses.
- Low business activities and persisting hardships in certain economy sectors, which limit effective demand for lending and weighs on the bank’s figures.
Credit-Rating’s note: the bank’s bond issue for UAH100m carry a long-term credit rating of uaA+ (that indicates high creditworthiness). This rating is underpinned by a guarantee for the bond issue provided by the bank’s parent – the Russia-domiciled Russian Standard Bank CJSC.
Information on all 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
