BROKBIZNESBANK`s Upcoming Bond Issue Assigned uaA+
OREANDA-NEWS. On 29 January 2008, Credit-Rating, a nationally recognized credit rating agency in Ukraine, assigned a long-term credit rating of uaA+ (uaA plus) to UAH600m 5-year interest-bearing bonds issue by Kiev-based BROKBIZNESBANK JSB (`Bank`) with a developing outlook. 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 uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions. A plus + and a minus - signs indicate intermediary categories compared to the standard categories (grades).
A Developing outlook indicates that there is a high possibility for a rating to be changed in the course of the year.
Factors maintaining the credit rating
The Bank is among the 20 largest banks for the amount of assets and has sufficient level of capitalization to provide further development;
Sufficient development of the Bank`s branch network and card segment and the scheduled increase of the sales channels provide the Bank`s further development and improvement of its financial indicators.
Factors constraining the credit rating
The Bank has high credit portfolio concentration on key borrowers and large amount of loans given for the discounted bills as a result of a risk credit policy;
High resource base concentration causes the Bank`s dependency on the financial condition of the largest clients and enhances the liquidity risk;
Bank`s assets and liabilities are unbalanced by redemption terms
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