OREANDA-NEWS. January 10, 2008. Credit-Rating, a nationally recognized credit rating agency in Ukraine has assigned a long-term credit rating of uaBBB to UAH40m 5-year coupon bonds (G series) to be issued by Lviv-based Selyanskyi Commercial Bank Dnister OJSC, the agency's press service reports. In the course of analysis Credit-Rating considered Bank's financial statements for 2003-2006 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. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.

Factors maintaining the credit rating.

    * Bank's resources are well diversified on its primary customers, in fact as of Jul.1, 2007, the funds of 20 biggest lenders account for 28 per cent of liabilities.
    * The specific gravity of overdue and doubtful debts in Bank`s loan portfolio attributable to customers makes up 0.53 per cent as of Jul.1, 2007.
    * The Bank`s key figures are on adequate level for the national banking system.
    * Bank`s transparency and openness.

Factors constraining the credit rating.

    * Modest size of Bank`s high-liquid assets coupled with Bank`s dependency upon inter-bank market, which all raises the liquidity risks.
    * Low Bank`s capitalization accompanied by Bank`s tending to crediting companies, which operate in certain businesses, with the standard for large credit risks exceeding 2.3x that average of the national banking system.
    * The Bank`s risk management requires further enhancements in the framework of Bank`s development strategy.
    * The Bank is exposed to loss of its market share given that big systemic banks will further augment their market positions.