OREANDA-NEWS. January 14, 2008. Credit-Rating, a nationally recognized credit rating agency in Ukraine has assigned a long-term credit rating of uaBBB- (uaBBB minus) to Donetsk-based PIVDENKOMBANK OJSC and to its UAH40m issue of 3-year registered coupon bonds (A series), the agency's press service reported. In the course of analysis, Credit-Rating considered the Bank's financial statements for 2002-2006 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.

Bank's high performance indicators, specifically as of Oct. 1, 2007 the ROA exceeds 2 per cent with the performance efficiency indicator making up a. 160 per cent. The Bank's assets and liabilities are balanced by their redemption terms. The majority of Bank`s key figures remain on adequate level for the national banking system.

Factors constraining the credit rating.

High level of concentrations in Bank`s loan portfolio on its principal borrowers (275 per cent of the 1st tier capital account for 20 largest borrowers), which, coupled with the Bank's modest reserves for loan operations, may negatively affect the Bank's liquidity and capitalization.

The high level of concentrations in the Bank's resource base and limited capacity for new customers' attraction makes the Bank dependant upon financial state of a low number of its customers, thus raising the liquidity risks. The Bank has no formalized development strategy. The Bank is exposed to risks of loss of its market share provided that big systemic banks would further augment their market positions.