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15.02.2007
Bond issue by «Bank «Familniy» LLC assigned uaBB credit rating
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBB long-term credit rating to the issue of registered coupon bonds by Donetsk-based "Bank "Familniy" LLC ("the Bank" or "the Issuer") for the amount of UAH 25m with the 2-year original maturity. In the course of analysis the agency used Issuer`s financial statements for 2002-2005 and 9M2006 as well as other inside information furnished by the Bank.
Issues rated uaBB are the least affected by the risk of non-payment of the principal and interest within the speculative grade. The obligor, however, may be impaired to timely and in full meet its commitments on the obligation in the Ukrainian financial market environment in the event of adverse changes in business, financial and economic conditions. However, the possibility of nonpayment is low in the near future.
Factors supporting the credit rating
- High securitization of active operations with the Bank`s own capital (34.4%) and of credit risks (56.1%) as of 01 Oct. 2006. These indicators for Ukrainian banks are 11.6% and 15.9% respectively.
- High quality of credit portfolio, in fact the specific gravity of doubtful and bad credits amounts to 1.9%
Factors constraining the credit rating
- The Bank has insufficient regional network preventing from competition with other banks, which assume themselves as systematic and universal.
- The Bank`s growth rates for the period from 1 Jan. 2004 to 1 Oct. 2006 are lower than that of 4th group banks, specifically the Bank`s assets grew 2.16x, the own capital grew 1.39x, with the banks of 4 th group having reached 2.37x and 2.87x respectively.
- Risks which may incur under the Bank`s peculiar activity, namely the retail.
- High concentration of resource basis, in fact the specific gravity of 10 biggest deposits amount to 42% of the Bank`s deposit portfolio as of 1 Oct. 2006
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
