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25.05.2005
Credit-Rating agency upgrades national scale rating for Ukrgazbank
May 25 – Credit-Rating, Ltd. said Wednesday it upgraded its national scale long-term credit rating assigned to Ukrgazbank, Kyiv to “uaBBB” level. The rating forecast is stable. Credit rating was assigned to the bank by the agency for the first time in July 2002.
During its procedures leading to the credit rating upgrade the agency considered Ukrgazbank’s dynamic stable growth, the rate of which considerably exceeds the average indices for Ukraine’s banking system. Asset growth, totaling 1.66 billion UAH, was 16.3 percent in the first quarter. With the aim of providing for the bank’s stable development, management decided to increase the authorized fund by 50 million UAH to 170 million UAH. There are also plans to increase Ukrgazbank’s share capital to 220 million UAH by the end of the year.
In the first quarter the bank’s holdings increased considerably with the priority share of liabilities (45 percent) in individual deposits, the volume of which exceeds 750 million UAH. The bank pays proper attention to constant updating and modernization of the services provided to customers by the bank. A bank sponsorship program realized by Ukrgazbank at their joining of the Visa payment system will contribute to commission profits growth and reduction of the costs of funding. Quarterly assets profitability was low and amounted 0.08 percent compared with the average index of 0.35 percent in Ukraine. The bank’s net profit at the end of the quarter was 1.3 million UAH.
