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07.12.2007
Credit-Rating rates CLEARING HOUSE Bank at uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBBB to Kiev-based CLEARING HOUSE Joint-Stock Bank (`Bank`). In the course of analysis Credit-Rating considered Bank`s financial statements for 2002-2006 and 1H2007 as well as other inside information furnished by the Bank.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The Bank`s key figures are on adequate level for the Ukrainian banking system.
- The Bank`s assets and liabilities are balanced by their redemption terms.
- The specific gravity of overdue and doubtful indebtedness in Bank`s customer loan portfolio makes up 0.39 per cent as of Jul.1, 2007.
Factors constraining the credit rating
- Bank`s unstable resource basis, namely disposal of a significant volume of poste restante funds, which urges the Bank to hold a large volume of high-liquid yet low-profitable assets.
- High concentration of the Bank`s loan portfolio on its principal borrowers, in fact over 60 per cent of the portfolio account for 20 biggest borrowers as of Jul.1, 2007.
- Extreme level of concentrations on the principal customers, which may adversely affect the Bank`s liquidity, accompanied by poor diversification of the customers funds on types of activities.
- The Bank`s risk management requires further enhancements in the framework of Bank development.
- Bank`s ambitious expansion plans, which envisages significant investments an may lead to development overexpenditures.
Information on all credit ratings assigned in accordance with the National Scale may be found in REUTERS, BLOOMBERG and FTN MONITOR information systems.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
