OREANDA-NEWS. November 20, 2009. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it revised a number of bank deposit ratings (‘BDR’) previously assigned to Ukrainian banks.

Basing on the current data, which reflect performance of the banks, Credit-Rating has suspended 1 deposit rating; another 1 rating, which was suspended, has been withdrawn; 2 BDRs have been downgraded (to ‘2’ from ‘3’), and 1 BDR has been upgraded (to ‘4’ from ‘3’). The bank deposit ratings assigned to other banks, have been affirmed.

The majority of the banks (25) represent average strength of deposits bearing rating ‘3’. The BDR of ‘5’ (the highest strength) is assigned to 8 institutions, with the number of banks carrying rating ’4’ (high strength) recorded at 14. The strength of deposits in 3 banks is below average carrying rating ‘2’.

The Credit-Rating’s methodology envisages a constant monitoring of the financial state of institutions and regular revision of their ratings. The information on current BDRs, no which Credit-Rating obtained bank’s approval for publication may be found in the agency’s web-site. As of today, the information on their BDRs was approved for publishing by 17 banking institutions. The rest of the ratings will be published once the approval from a bank has been received.

The bank deposit ratings have dynamic nature and may be revised following events and/or changes in indicators of bank’s performance, which may affect the bank’s capacity to make timely and full payments on its deposits. Further change of the rating is contingent upon bank’s capacity to maintain its indicators on a sufficient level under adverse economic environment in the country. The rating is also considerably affected by changes in operating environment, namely regulator’s policy affecting the banking sector, and willingness and ability of the state or owners to furnish necessary backing to the institution.