OREANDA-NEWS. On 06 March 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB to Lviv-based KREDOBANK OJSC (`bank`) and its upcoming issue of registered coupon bonds (series C). The amount of the issue is UAH75m, due Feb. 23, 2014. In the course of analysis Credit-Rating considered bank`s financial statements for 2004-2007 and 9M2008 and 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.

Factors maintaining the credit rating

In case of need the bank may get necessary backing from its principal owner PKO BP S.A. which is one of the biggest Poland`s banks, that helps the bank maintain competitive positions in the sector.

The bank`s resources are well diversified on its principal borrowers.

Factors constraining the credit rating

Deteriorated quality of the bank`s loan portfolio coupled with the bank`s detrimental performance in 2008.

Decline in bank`s liquidity indicators and insufficient balance in assets and liabilities by their due terms.

The bank`s risk management requires enhancements under expanding bank`s activities.

Growing impact of external factors on the financial market accompanied by anticipated decrease in business activities represented by certain economy sectors, which may negatively affect solvency of primary bank`s customers and bank`s capitalization and liquidity.