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21.11.2006
The bond issue by the OJSC «Megabank» assigned uaA- (uaA minus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaA- (uaA minus) long-term credit rating to the issue of the registered coupon bonds (C and D series) by the Kharkiv-based OJSC "Megabank" ("the Bank", "the Issuer" or "the company") for the amount of UAH 25m with the original maturity of C series being 2 1/2 years, of D series 3 years. In the course of analysis, the "Credit-Rating" agency used Issuer`s 2001-2005 and 1H 2006 financial reports as well as other inside information furnished by the company.
The uaA issue rating reflects Issuer`s STRONG CAPACITY to pay the debt liability given, it may, though, be more vulnerable to adverse changes in economic, financial and business conditions than issuers rated uaAA and uaAAA. "Minus" denotes rating`s relative status within major categories.
Factors supporting the credit rating
- The Bank has created and currently operates the general system of energy and municipal service payments, which helps the Bank diversify the revenue sources, and develop retail business (the number of personal accounts in General account centre amounted to 1.6m as of 1 Sep. 2006)
- The Bank`s assets grew 3.75x and amounted to UAH 885.8m over 2001-1H 2006, with the main assets and liabilities groups being proportional and balanced.
- High quality of the credit portfolio, in fact, the specific weight of doubtful accounts in Bank`s credit and investment portfolio amounts to 0.2%, the share of overdue credits has fluctuated between 0.12-3.5% over the period analyzed, which is satisfactory for bank institutions.
- The Bank has diversified its activity and has developed as retailer over the past few years.
Factors constraining the credit rating
- Risks incurred under the Issuer`s ambitious strategy.
- The Bank`s expenditures and revenues ratio is 95.44% (as of 1 Jul. 2006), whereas the average ratio for Ukrainian banks is 87.14%
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found in the REUTERS and BLOOMBERG information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
