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12.04.2007
Credit rating assigned to bond issue by «Promekonombank» affirmed at uaBBB-
"Credit-Rating", a nationally-recognized credit rating agency in Ukraine has today affirmed the uaBBB- (uaBBB minus) long-term credit rating assigned to the issue of registered coupon bonds by Donetsk-based "Promekonombank" OJSC ("Bank") for the amount of UAH 10m with the 3-year original maturity. The rating was assigned to the issue on 26 Sep. 2005 and has been monitored by "Credit-Rating" remaining non-public at the Issuer`s request. To revise the rating the agency used Bank`s financial statement for 4Q06 and 2006 full year, as well as other inside information furnished by the Bank.
The uaBBB issue 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.
In the course of the rating`s assignment and revision procedures the following factors have been taken into consideration: Bank`s adequate securitization with the fixed reserves which provides the Bank with the competitive advantages in long-term crediting; high level of securitization with the equity (18.8% according to 2006 totals, with 12.5% being average of the Ukrainian banking system). At that, the assets do not tend to grow, either the income, or the Bank`s expenditures tend to drop. Another negative factor is Bank`s undeveloped regional network, which prevents the Bank form raising its competitiveness.
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
