OREANDA-NEWS. On 23 April 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB- (uaBBB minus) to Kiev-based Commercial Bank Stolytsya LLC (`Bank` or `company`) and its upcoming issue of registered coupon bonds (series A). The amount of the issue is UAH50m, with 2-year original maturity. In the course of analysis Credit-Rating considered Bank`s financial statements for 2004-2007 as well as its other inside information.

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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

High Bank`s capitalization and sufficient profitability from its principal activity.
Bank`s assets and liabilities are balanced by their redemption terms.
Bank`s key figures remain on adequate level for the national banking system.

Factors constraining the credit rating

High level of customer concentrations in Bank`s loan portfolio, which are intensified by significant volume of net credit risks, which may negatively affect Bank`s liquidity and capitalization.

High level of concentrations in Bank`s resource base, aggravated by dependency upon construction market and financial state of a low number of its customers, which also raises the liquidity risks.

Low liquidity of Bank`s securities portfolio, which makes the Bank vulnerable to market risks.

The Bank requires further enhancements of its management system.

Bank`s underdeveloped branch network and card segment, which hampers Bank`s capacity in attraction of new customers and achievement of its strategic goals.