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13.04.2006
"uaBB+" credit rating assigned to upcoming bond issue of OJSC Universal Bank for Development and Partnership (Kyiv)
Today independent rating agency Credit-Rating announced the granting of a long-term uaBB+ credit rating to the registered interest-bearing bond issue by OJSC Universal Bank for Development and Partnership (Kyiv): A series in the amount of UAH 20 million with a circulation period of 3 years, B series in the amount of UAH 20 million with a circulation period of 5 years. The ratings forecast is positive.
Factors supporting the credit rating's level :
- Growth of assets of OJSC Universal Bank for Development and Partnership over the period from 2002 till 01.01.2006 by 5.14 times, the growth of liabilities by 6.45 times; increase of the banks incomes (5.8 times) was ahead of expenditure increase (5.64 times);
- Expansion of regional infrastructure of Universal Bank for Development and Partnership in 2004-2005 through 17 new establishments;
- Most funds attracted by the bank are fixed-term funds which creates good basis for long-term crediting and enhances its competitive positions;
- Supply of credit risks with owned capital is higher than average in Ukrainian banks 15.4% as of 01.01.2006 (average value in Ukrainian banks 14%).
Factors restricting the credit rating's level :
- Considerable deterioration of credit portfolio of OJSC Universal Bank for Development and Partnership over the past three years and high level of reservation (share of reserves in the credit and investment portfolio as of 01.01.2006 was 9.1%);
- Low profitability indices of the banks assets (0.43% in 2005) due to considerable level of expenditures on reserves for credit operations (37.2% of total expenditure volume of 2004 and over 23.6% in 2005);
- Uncertain growth tendencies of the banks resource base over the last year;
- The bank is endangered with risks related to rapid growth of the establishments system in particular maintaining the assets quality and control over the expenditure growth.
For more detailed information, please contact
us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
