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28.12.2006
Bank «Kapital» assigned uaBBB- (uaBBB minus) credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBBB- (uaBBB minus) long-term credit rating to Donetsk-based "Joint-Stock Commercial Bank "Kapital" OJSC (the Bank). In the course of analysis the "Credit-Rating" agency used Bank`s financial reports for 2001-2005 and 9 months of 2006 as well as other inside information furnished by the Bank.
The agency also affirmed the uaBBB- (uaBBB minus) long-term credit rating assigned to the issue of registered coupon bonds for the amount of UAH 10m with the 5-year original maturity.
The uaBBB issuer rating reflects adequate capacity of the Bank to timely and in full pay the given debt liability in the Ukrainian financial market environment, there is, though, a higher vulnerability to the effect of adverse changes in business, financial and economic conditions as compared to the debt liabilities with higher ratings. The "+" and "-" modifiers denote rating`s relative status within major categories.
Factors supporting the credit rating
- Rapid growth in Bank`s client base, specifically in number of clients-private persons (53.2x growth over 2001 9 months 2006).
- Indicators of active operations (12.11%) and credit risks (13.24%) securitization with Bank`s own capital are higher than that average of Ukraine (11.58% and 12.76% respectively).
- Gradual growth in specific gravity of attracted resources in the obligations from 36.32% as of 1 Jan. 2005 to 82.74% as of 1 Oct. 2006.
Factors constraining the credit rating
- Bank`s undeveloped regional structure.
- Bank`s credit portfolio deterioration over the period under study, specifically as of 1 Oct. 2006 the specific gravity of doubtful indebtedness in credit portfolio was 0.53%, the specific gravity of overdue indebtedness 1.58% (0.34% and 1.03% respectively as of 1 Jul. 2005).
Information on all the credit ratings assigned in accordance with the Ukrainian national scale can 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
