OREANDA-NEWS. On 22 June 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it upgraded to uaAA- (uaAA minus) from uaA the long-term credit rating assigned to coupon bonds issued by Kiev-based SEB Bank OJSC (`bank`) for the amount of UAH100m due Jan. 21, 2013. The outlook on the rating is stable. In the course of analysis Credit-Rating considered bank`s financial statements for 2007-2008 and 1Q2009 and its other inside information.

An obligor or a debt liability with uaAA credit rating is characterized with the VERY STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.

Factors maintaining the credit rating

In case of necessity the bank may get necessary backing from its principal shareholder Skandinaviska Enskilda Banken AB, which has vast experience in financial markets being incorporated with SEB Group, which is one of the leading financial groups in Nordic countries.

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

Factors constraining the credit rating

Concentrations in bank`s loan portfolio by primary borrowers may negatively affect bank`s liquidity and capitalization.

Bank`s detrimental performance in 2009, which was prompted by deteriorated quality of bank`s assets following merger with Factorial-Bank JSB.

Low specific gravity of spare capital.

Growing impact of external factors on the financial market and decrease in business activities in certain industries, combined with significant amounts of loans granted in foreign currencies, which, under depreciating national currency, may negatively affect solvency of certain borrowers and bank`s financial indicators.