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16.08.2006
uaBB+ credit rating assigned to upcoming bond issue of OJSC CB Interbank
Today independent rating agency Credit-Rating announced the granting of a long-term uaBB+ credit rating to the scheduled registered interest-bearing bond issue (B series) by OJSC CB Interbank in the amount of UAH 5 million with a circulation period of 3 years.
Factors supporting the credit rating level:
- Positive experience in bond servicing and redemption (3-year bonds offered by the bank in 2003 in the amount of UAH 7 million are redeemed in full);
- considerable positive working experience in exchange market and securities market;
- rather high showings of credit portfolio quality: as of 01.06.2006 the share of overdue and doubtful debt is 0.12%.
Factors restricting the credit rating’s level:
- low growth rates of the bank’s performance over the past 5 years compared to the development of Ukrainian banking system. In the period from 2001 till the 1st quarter 2006 the bank’s assets grew 88%, the credit investment portfolio increased 62.1% (average assets growth in Ukrainian banks Oct. 2002 – Jan. 2006 was 3.4 times, growth of credit investment portfolio – 3.27 times);
- low diversification of active bank operations with borrowers (as of 01.06.2006 the share of 10 largest creditors made up 65% of the bank’s credit portfolio);
- low development of bank’s territorial infrastructure and electronic transfer system;
- starting in 2004 the bank’s interest expenditures are higher than interest yields.
For more detailed information, please contact us.
Kyiv (+38044 490 25 50, fax +38044 490 25 54)
