Credit-Rating Upgrades BM Bank to uaBBB
OREANDA-NEWS. June 18, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it upgraded to uaBBB+ (uaBBB plus) with stable outlook from uaBBB the long-term credit rating assigned to Kiev-based BM Bank LLC (‘bank’). To revise the rating Credit-Rating considered bank’s financial statements for 2008-2009 and 1Q2010 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).
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 primary owner (Russia-domiciled Bank of Moscow JSCB), which is among 5 largest Russian banks; the bank’s authorized stock is anticipated to be augmented.
The bank’s assets and liabilities are well balanced by their due terms.
Factors constraining the credit rating
The bank’s customer loan portfolio is high concentrated by major borrowers, which coupled with low level of provisioning, may negatively affect bank’s liquidity and capitalization.
Concentration of the bank’s resources by major creditors constrains bank’s financial flexibility and raises liquidity-associated risks.
Bank’s loss-generating performance, prompted by eroded quality of its assets.
Retaining adverse environment in the financial market and real sector of economy which may undermine borrowers’ solvency and weighs on bank’s financial indicators.
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