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20.04.2007
Outlook on the rating assigned to Evropeyskyi Bank changed to Positive
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today changed to Positive from Stable the Outlook on the rating uaBB+ (uaBB plus) assigned to Kiev-based Evropeyskyi Joint-Stock Commercial Bank (Bank). To revise the rating Credit-Rating used Bank`s financial statements for 4Q06 and 2006 full year, as well as other inside information furnished by the Bank.
The agency has also announced the change to Positive from Stable in Outlook on the uaBB+ (uaBB plus) long-term credit rating assigned to Bank`s issue of registered coupon bonds (A series) for the amount of UAH 20m with the 3-year original maturity.
The uaBB Bank`s rating denotes that its liabilities 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.
Positive Outlook exhibits a possibility for the rating`s upgrade in the course of the year on condition that the positive tendencies are retained and the current risks are reduced.
In the course of the rating`s Outlook change procedure the following factors were taken into consideration: rapid growth of assets in 2006, boosted by increase in client loan portfolio and funds placed as interbank loans; this growth has also been underpinned by 2x increase in authorized capital, by attraction of clients` resources and growth in clients` funds, specifically fixed deposits of legal and natural persons, as well as by increase in remains on clients` current accounts. Moreover, the share of loan and investment portfolio grew by 3.8 percentage points (p.p), up to 83.73%, and the size of bad credits lowered significantly. The Bank`s liquidity remains high (the quick liquidity amounted to 36.08% as of 1 Jan. 2007, which by 10 p.p exceeds the figure of 2006 year-beginning.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found in the 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
