OREANDA-NEWS. January 12, 2008. Credit-Rating, a nationally recognized credit rating agency in Ukraine has assigned a long-term credit rating of uaAA- (uaAA minus) to Kiev-based SEB Bank OJSC. 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 uaAA credit rating is characterized with the VERY STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.

Factors maintaining the credit rating.

    * The Bank's owner Skandinaviska Enskilda Banken AB enjoys a significant experience in financial markets (the SEB Group is one of the leading financial groups in Northern Europe serving over 400K corporate and 5m private customers; the Group's consolidated assets exceeds USD341bn as at 3Q2007-end.
    * The Bank`s prudent and consistent credit policy and sound risk management system contributes to high quality of Bank`s loan portfolio.

Factors constraining the credit rating.

    * High level of concentrations in the Bank`s loan portfolio on principal borrowers and the Bank's tending to lending to trade companies accompanied by low reserves for loan operations may negatively affect the Bank's liquidity and capitalization.
    * The Bank's low indicators of performance efficiency and high Bank's administrative expenses.
    * Bank's underdeveloped branch network hampers Bank's capabilities to compete other banks, which position themselves as systemic and universal.