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22.06.2005
uaBBB- credit rating assigned to upcoming bond issue of the CB "Active-bank"
Today independent rating agency Credit- Rating announced Wednesday that it has awarded a uaBBB rating for the issuance of registered, interest-bearing bonds of Active Bank Ltd in the amount of 20 million UAH for a 3 year circulation period. The forecast of the rating is stable.
Positive factors that were taken into account in the rating:
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Dynamic increase of the main balance indices (the bank’s assets were 285.8 million UAH on 04.01.2005) made it possible for the bank to climb from the 112th place (at the beginning of 2003) to 76th place in the NBU rankings (April 2005);
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The policy of the bank is aimed at basic resources diversification, the latter is one of the strategic targets of CB “Active-bank”, and at the same time it is the instrument that provides financial stability of the bank;
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High liquidity indices of the bank (highly liquid assets make up 45 percent of the bank’s assets compared to the 30 percent average in the Ukrainian banking system) allows to even out current financial risks;
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The bank is sufficiently diversified, has quality credits and the investment portfolio of the bank has a small proportion of overdue payments (0.17 percent). The bank has positive experience in allocation and service of debt securities of its own issuance.
Negative factors that were taken into account in the rating:
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During the period under analysis the indices of the bank’s supportability by its own capital decreased. As of 04.01.2005 the bank’s own capital made up 12 percent of liabilities (13 percent on average in Ukraine);
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The volume of net profit (2.6 million UAH) and profitability indices (assets profitability was 0.83 percent) in 2004 are much lower than the results in 2003 (3.2 million UAH and 1.7 percent respectively);
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The strategy of active regional infrastructure growth and expansion causes concomitant risks: credit-investment risks, extensive growth risks and so on;
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The bank began its activities only at the end of 2002, and it restricts its experience to the market of banking services.
Information about all credit ratings in the Ukrainian national scale is on the Credit Rating site at www.credit-rating.com.ua
In order to get more detailed information, please contact Sergei Baklazhenko, Kyiv (044) 490-25-50 or 490-25-54, or at rating@credit-rating.com.ua
