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27.04.2007
Bank Familnyi assigned uaBB+ credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBB+ (uaBB plus) long-term credit rating to Donetsk-based Bank Familnyi (Bank`). In the course of analysis Credit-Rating used Bank`s financial statements for 2002-2006, as well as other inside information furnished by the Bank.
The agency has also announced the upgrade to uaBB+ (uaBB plus) from uaBB the long-term credit rating assigned to issue of registered coupon bonds by the Bank for the amount of UAH 25m with the 2-year original maturity.
Banks 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 maintaining the credit rating
- High securitization of active operations with the Bank`s equity (30.99%) and of credit risks (44.15%) as of Jan.1, 2007. These indicators for Ukrainian banks are 12.51% and 14.11% respectively.
- High quality of loan portfolio the specific gravity of doubtful and bad credits amounts to 1.56%.
Factors constraining the credit rating
- Low Bank`s profitability according to 2006 totals, specifically ROA amounted to 0.88%, ROE amounted to 2.85%. These indicators for Ukrainian banks are 1.22% and 9.74% respectively.
- The Bank has insufficiently developed branch network preventing from competing with other banks, which assume themselves as systematic and universal.
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
