OREANDA-NEWS. On 21 April 2009 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 Odessa-based Misto Bank CB LLC (bank). The outlook on the rating is negative. Credit-Rating has also simultaneously placed the rating on rating Watch List (RWL). To revise the rating Credit-Rating considered banks financial statements for 2007-2008 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. 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 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 ratings bearer.

Factors maintaining the credit rating

Anticipated enhancements in banks capitalization ratios (as of today, the amount of UAH23.2m is accounted for as unregistered shareholder contributions).

The majority of banks figures, which exhibit its activity remain on sufficient level.

Factors constraining the credit rating

Increased concentrations in the loan portfolio, which may negatively affect banks liquidity and capitalization.

Low capitalization ratios combined with eroded asset quality.

Banks insignificant clientele, and consequently, high concentrations in attracted funds, which makes the bank dependant upon financial state of a small number of its customers and raises the liquidity risks.

Declined liquidity indicators and low specific gravity of free capital.

Growing impact of external factors upon the financial market, accompanied by decreased business activities in certain industries, and large amount of loans denominated in foreign currencies, which, under depreciating national currency may negatively affect solvency of certain borrowers and banks liquidity and capitalization.