OREANDA-NEWS. On 08 July 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB to Donetsk-based First Ukrainian International Bank CJSC (`bank`). The outlook on the rating is stable. Credit-Rating has also assigned to the bank its bank deposit rating of `4` (high strength). In the course of analysis Credit-Rating considered bank`s financial statements for 2004-2009 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.

The bank deposit rating of `4` (high strength) indicates that the bank is sufficiently reliable, yet being more vulnerable to impact of adverse commercial, financial and economic factors than banks bearing rating `5`. The probability of bank`s failure to return deposits is low.

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

Factors maintaining the credit rating

The bank`s loan portfolio by primary borrowers and types of business.

Bank`s adequate capitalization ratios.

The bank operates a wide-spread branch network and a developed card segment, which contributes to retention of the clientele and maintenance of bank`s market standing.

Factors constraining the credit rating

The bank is exposed to risks of failure to meet its certain obligations, primarily towards foreign lenders, under opacity with regard to restructuring these obligations.

High concentrations of the bank`s resource base by principal creditors, which constrains bank`s financial flexibility and raises the liquidity risks.

Bank`s detrimental performance, prompted by deteriorated asset quality.

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

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.