OREANDA-NEWS. December 28, 2008. Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBBB- (uaBBB minus) to UAH80m 3-year coupon bonds to be issued by Kiev-based TAS-Businessbank JSB, the agency's press service reported. In the course of analysis Credit-Rating considered Bank's financial statements for 2003-2006 and 9M2007 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.

The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.

Factors maintaining the credit rating:

The Bank may get necessary backing from its primary owner coupled with the fact that the Bank's performance has significantly improved since change in its shareholder structure. The Bank`s performance indicators grew in the past year, in fact the asset profitability increased 1.5+ p.p. (making up about 20 per cent as of Oct. 1, 2007), with the performance ratio accounting for 140 per cent as of Oct. 1, 2007. Bank's transparency and information openness.

Factors constraining the credit rating:

The Bank's loan portfolio is highly concentrated on principal borrowers (about 50 per cent of the portfolio account for 20 biggest borrowers as of Oct. 1, 2007), which may negatively affect Bank's liquidity and capitalization.

Poor quality of the Bank's loan portfolio, in fact, as of Oct. 1, 2007, the specific gravity of overdue and doubtful debts in the Bank`s loan portfolio exceeds 5 per cent (23.3 per cent as at 2006-beginning).

The share of non-profit assets makes up over 20 per cent of the Bank's asset structure as of Oct. 1, 2007. The Bank's key figures have remained volatile in the past 5 years (with detrimental performance in 2005 and 1H2007). Bank's underdeveloped branch network and card segment, which, given that big systemic banks would augment their market shares, may significantly hamper Bank`s achievement of its strategic goals.