OREANDA-NEWS. December 22, 2009. Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned its long-term credit rating of uaA to Kiev-based INDEX-BANK PJSC (‘bank’). The outlook on the rating is stable. In the course of the rating procedure Credit-Rating considered bank’s financial statements for 2006-2008 and 1H2009 and its other inside information.

An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions.

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 may get necessary backing in case of necessity from its core shareholder - Paris-based

Credit Agricole SA.

The bank’s customer loan portfolio is well diversified by its primary borrowers.

Bank’s assets and liabilities are well balanced by their due terms.

Bank’s information transparency and openness.

Factors constraining the credit rating

High specific gravity of overdue debts in the customer loan portfolio.

Poor performance indicators of the bank.

Bank’s tending to currency and credit risks, which imposes pressure on the bank’s capital.

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