OREANDA-NEWS. Credit-Rating, a nationally recognized credit rating agency in Ukraine has assigned Kiev-based National Credit bank a long-term credit rating of uaBBB, the agancy's press service reported. In the course of analysis, Credit-Rating considered the 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 major owner is Prominvestbank CJSC, which is one of the biggest Ukrainian banks enjoying a significant experience in the financial market. The Bank operates a widespread branch network comprising of 24 branches and 46 point-of-sales, based in 20 regions of Ukraine, which enables the Bank to diversify its resource basis and contributes to Bank`s developing its retail segment.The Bank`s key figures are on the adequate level for the national banking system.

Factors constraining the credit rating:

Bank`s low stock capitalization making up 44.5 per cent as of July 1, 2007; the growth rates of Bank`s assets exceed those of Bank`s equity, which led to decrease in standards of capital adequacy. The specific gravity of overdue and doubtful debts in the Bank`s loan portfolio account for 3.84 per cent as of July 1, 2007. Low Bank`s liquidity standards accompanied by high administrative expenditures. The Bank does not have a formalized risk management strategy; Bank`s risk management requires further enhancements. Bank`s exposure to losing its market positions provided that big systemic banks would increase their market share.