Credit-Rating Downgrades Pritchernomorye CB OJSC`s Ratings to uaBB-
OREANDA-NEWS. On 22 January 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it downgraded to uaBB- (uaBB minus) with negative outlook the long-term credit rating assigned to Dnepropetrovsk-based Pritchernomorye Commercial Bank OJSC (`bank`) and its registered coupon bonds (series B, C) for the amount of UAH10m. Credit-Rating has also placed the ratings on Rating Watch List.
The downgrade of the bank`s rating and of its issue of registered coupon bonds of series B for the amount of UAH5m due Jan. 9, 2011 and of series C for the amount of UAH5m due Feb. 6, 2011, as well as placement of the ratings on RWL, were prompted by the bank`s deteriorated solvency and aggravated bank`s information transparency. The ratings are also weighed by decreased business activities in the majority of the national economy`s branches, dropped population`s incomes, which negatively affects creditworthiness of the customers, undermined people`s trust in the banking sector, and devaluation of the national currency under limited access to international resource markets.
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).
Negative outlook indicates that there is a possibility to downgrade the rating in the course of the year, on condition that negative tendencies are retained and current risks are realized.
The Rating Watch List intends for informing the financial market participants about possible changes of ratings in short-term prospective. The rating placed on RWL denotes that Credit-Rating is currently considering its change as a result of events or ongoing trends, which may negatively affect creditworthiness of a rating`s bearer.
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