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16.03.2007
Bank «Daniel» 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 the Kiev-based "Commercial Bank "Daniel" LLC ("Bank"). In the course of analysis the agency used Bank`s financial statements for 2005-2006, as well as other inside information furnished by the Bank.
The uaBBB issuer rating reflects Bank`s adequate capacity to timely and in full meet its commitments on the obligations 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 obligors with higher ratings. The "+" and "-" modifiers denote rating`s relative status within major categories.
Factors maintaining the credit rating
- Bank`s rapid growth since its foundation (the Bank rose in NBU`s (National Bank of Ukraine) ranking from 151 as of 1 Apr. 2004 to 101 as of 1 Jan. 2007)
- High quality of Bank`s credit portfolio the specific gravity of doubtful indebtedness and of bad credits amounts to 0.31% as of 1 Jan. 2007, the credit and investment portfolio`s purity ratio amounts to 1.49% (the banking system`s average is 1.65%), a satisfactory diversification of the credit and deposit portfolio, which does not exceed 31% on 10 biggest Bank`s deposits and credits as of 1 Jan. 2007.
- The securitization of credit and investment risks with the capital exceeds that average of the banking system, though tends to decrease, with such a tendency being retained in 2007.
Factors constraining the credit rating
- Low profitability of assets and equity comparing with the national banking system (as of 1 Jan. 2007 the Bank`s ROA is 0.95%, the ROE is 4.04%, with those of the banking system being 1.22% and 9.74% respectively)
- Risks of possible decrease in the Bank`s market share with the growing shares of large national banks.
- Bank`s uncertain mid-term development strategy.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found at 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
