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27.03.2007
Credit rating assigned to bond issue by «Pritchernomorye» Bank upgraded to uaBB+
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today upgraded the long-term credit rating assigned to bond issue (B, C series) by Dnepropetrovsk-based "Commercial Bank "Pritchernomorye" OJSC ("the Bank") for the amount of UAH 10m with the 5-year original maturity from uaBB to uaBB+ (uaBB plus). To revise the rating the agency used Bank`s financial statements for 2001-2006 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 non-payment is low in the near future. The "+" and "-" modifiers denote rating`s relative status within major categories.
In the course of the rating`s upgrade procedure the following factors were taken into consideration: growth in securitization of Bank`s credit and investment risks with the equity, higher diversification of the resource basis, decrease in specific gravity of doubtful and bad credits in credit portfolio to 0.2%, and the increased asset profitability up to 2.43% as of 1 Jan. 2007. The rating is also constrained by excessive levels of concentrations in Bank`s credit portfolio (10 biggest credits take 47.9% of the credit portfolio).
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
