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10.07.2006
uaBBB+ credit rating assigned to OJSC Nadra
Today independent rating agency Credit-Rating announced the granting of a long-term uaBBB+ credit rating to OJSC CB Nadra (Kyiv).
Factors supporting the credit rating's level:
- the banks dynamic development during 2001-2005: assets grew 5.6 times, owned capital 5.7 times, though followed by considerable imbalances in assets and liabilities operations;
- improved market and infrastructure characteristics client base, electronic funds transfer, regional infrastructure which provides OJSC CB Nadra with competitive advantages in retail business;
- good client diversification of credit portfolio;
- considerable volume of payment card issue provides the bank with rather stable and cheap resources (by the beginning of 2006 this trend took 8% of total deposits of OJSC CB Narda).
Factor restricting the credit rating's level:
- by the beginning of 2006 the banks fast liquidity index (calculated according to the methodology by Credit-Rating) was 11.2%, which is 15% less than the average in the banking system of Ukraine on the same date; the banks liquidity ratios controlled by NBU are lower than actual indices in the banking system;
- low supply with own capital: the bank operations are supplied with owned capital by 9.3%, credit and investment risks 10.6%, which is lower than indices in banking system of Ukraine by the beginning of 2006 by 2.6% and 3.4% respectively;
- resource supply for credit and investment activity including capital was 75%;
- heavy dependency of the bank on resources received in the interbank and international financial markets;
- low profitability showings: return on assets of OJSC CB Nadra in 2005 was 0.45%, while the average return on assets in Ukrainian banks 1.01%.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
