OREANDA-NEWS. On 18 June 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaBBB- (uaBBB minus) from uaBBB the long-term credit rating assigned to Kiev-based Transbank JSCB (`bank`). To revise the rating Credit-Rating considered bank`s financial statements for 2006-2007 and 1Q2008 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

Sufficient diversification of bank`s resource base, which, coupled with conservative bank`s policy, may bolster its liquidity.

Bank`s assets and liabilities are balanced by their due terms.

Factors constraining the credit rating

Low indicators of bank`s capitalization, which significantly restrain further bank`s expansion.

High level of concentration in bank`s loan portfolio by the primary borrowers, which, in case of aggravated solvency of even one of them may negatively affect bank`s liquidity and capitalization.

Low bank`s performance indicators in 1Q2008 and aggravated income structure.

The bank is exposed to loss of its market position, due to bank`s narrow possibilities for customer attraction and growing competition in Ukraine`s financial market.