OREANDA-NEWS  On 19 September Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBB+ (uaBB plus) to Kharkiv-based Region-Bank JSCRB (`bank`). In the course of analysis Credit-Rating considered bank`s financial statements for 2004-2007 and 1H2008 as well as its other inside information.

An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly 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

Bank`s adequate performance indicators.

Low specific gravity of overdue and doubtful debts in the bank`s customer loan portfolio (0.74% as of Jul. 1, 2008).

The bank`s obligations are well-diversified on the primary creditors.

Factors constraining the credit rating

High level of concentrations in the bank`s customer loan portfolio, specifically 62% of the portfolio (or 312% of the 1st tier capital) account for 20 biggest customers, which, coupled with low level of reserves may negatively affect the bank`s liquidity and capitalization.

Bank`s underdeveloped branch network and card segment, which hampers the bank`s achievement of its strategic goals.

The bank`s assets and liabilities are unbalanced by their due terms.

The bank requires enhancements in its risk management strategy.

Risk of loss of the bank`s market position, which is associated with the bank`s limited capacity for attraction of new customers and growing competition in Ukraine`s financial market.