OREANDA-NEWS. February 28, 2008. The international rating agency Fitch Ratings has assigned Medicinos Bankas the long-term credit rating B with stable prospect. The same assessment was granted for short-term credits of the Bank, reported the press-centre of Medicinos Bankas.

"It is an important of financial assessment for our bank as a financial institution", said Kestutis Olsauskas, the Board Chairman and Head of Administration of the bank. "The rating allows us to assess the existing potential of development and improvement and to plan the subsequent actions".

According to Mr K. Olsauskas, Medicinos Bankas is firmly determined to continue climbing up the ladder of ratings and its strategic plan contains specific measures to be implemented.

According to the agency, the rating is linked to the bank size and its threats in the competitive environment as well as macroeconomic situation in Lithuania. The rating was affected by controlled market risk and improving risk management systems of the Bank. It was also affected by co-operation with German KfW development bank which in 2006 granted Medicinos Bankas the loan of 5 million euro according to the Preparatory Action Programme of the European Union.

Fitch Ratings also notifies that unconsolidated sufficiency index of the Bank capital after increasing the statutory capital in the beginning of this year equals to 21.64 percent. The agency stated that overheating situation is emerging in the Lithuanian economy and the country may cope with the painful process of adaptation to the slower pace of growth.

Medicinos Bankas has issued a new issue of shares more than doubling its statutory capital –up to 68,875 million litas. All new issue of shares was acquired by the major bank shareholder Saulius Karosas who currently holds 90,91 percent of Medicinos Bankas shares together with the company Western Petroleum Limited directly controlled by him.

Medicinos Bankas assets during the last year grew by 66 percent and in 31 December 2007 totalled 708,26 million litas compared to 426,59 million litas in the end of 2006. According to unaudited data, the Bank's net profit during the last year was 5,54 million litas, i.e. 56,7 percent more than in 2006 when the net profit was 3,54 million litas. Loan portfolio of the Bank compared to 2006 last year increased by 51,3 percent –up to 447,35 million litas, and the customer deposits and credits increased by 73,3 percent –up to 404,50 million litas.