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04.10.2007
Credit-Rating rates Investbank’s bonds at uaBB+
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today assigned UAH10m 3-year issue of registered coupon bonds (A series) by Odessa-based Investbank Joint-Stock Commercial Bank (`Bank`) a long-term credit rating of uaBB+ (uaBB plus). In the course of analysis Credit-Rating considered Bank`s financial statements for 2002-2006 and 1Q2007 as well as other inside information furnished by the Bank.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The specific gravity of overdue and doubtful debts in Bank`s loan client portfolio made up 1.39 per cent as of Apr. 1, 2007.
- Bank`s performance indicator rose in the past two years, in fact it accounted for 81.21 per cent as of Jan.1, 2005, 113.95 per cent as of Jan.1, 2006, 181.75 per cent as of Jan.1, 2007, and 171.82 per cent as of Apr. 1, 2007.
Factors constraining the credit rating
- High customer concentrations on both sides of the balance sheet, specifically 70.27 per cent of Bank`s loan client portfolio account for 20 biggest loans as of Apr. 1, 2007, with the funds of 20 biggest creditors making up 47.86 per cent of Bank`s obligations.
- Bank`s key figures have been volatile in the past five years; the Bank performed detrimentally in 2002 and 2003.
- Risks of Bank`s losing its market position, which are bolstered by Bank`s modest branch network, which hampers Bank`s capabilities in competing other banks; the further expansion of the Bank as a regional one is contingent upon social and economic development of Odessa Oblast.
Information on all credit ratings assigned in accordance with the Ukrainian national scale may be found in REUTERS, BLOOMBERG and FTN MONITOR information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
