OREANDA-NEWS. On 02 July 2008 Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced that it upgraded to uaA from uaBBB+ (uaBBB plus) the long-term credit rating assigned to Kiev-based PIRAEUS BANK ICB OJSC (`bank`). To revise the rating the agency considered bank`s financial statements for 2006-2007 and 1Q2008 as well as its other inside information.

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.

Factors maintaining the credit rating

The bank has necessary backing from his principal shareholder (PIRAEUS BANK S.A., which is one of the biggest Greek banks), which empowers the bank to strengthen its market position.

Bank`s growing capitalization and enhancements in the capital structure (with the ratio of stock capitalization being over 90%).

Low specific gravity of bad loans (0.32% as at Apr. 1, 2008).

Factors constraining the credit rating

The bank`s resource base is dependant upon primary borrowers (the funds of 20 biggest borrowers account for over 60% of the bank`s liabilities as at Apr. 1, 2008).

Low level of reserves of the customer loan portfolio (1.3% as at Apr. 1, 2008), which may be insufficient for covering possible losses.

Bank`s aggressive expansion, which may negatively affect its key figures.

Necessity in optimization of business procedures and in enhancement of the risk management strategy due to bank`s expansion.