Credit-Rating: Turbulence in financial market abates

29.08.2008

According to 2Q2008 results Credit-Rating does not note significant changes in performance of banking institutions rated by the agency, with their key figures remaining on adequate level.

However, the agency notes increase in number of banks (to 14 from 12), in which the share of NPLs exceeded 3%. In 7 banking institutions the formed reserves does not cover in full the overdue and doubtful debts, which may weigh on the capital of these banks. The eroded quality of loan portfolios coupled with rise in cost of resources may negatively affect banks` performance, since the cost for reserves forming may increase too.

Detailed analysis of banks` performance in 2Q2008

Credit-Rating agency renders services on assignment and revision of credit ratings to 71 Ukrainian banks. The majority of the ratings is investment-grade and carry stable outlooks. As of Aug. 22, 2008 the agency maintains monitoring of 66 credit ratings of banking institutions and of 49 ratings assigned to their debt obligations, with 81% of the ratings being investment-grade.

For more information, please contact:
Information and Communication Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua