OREANDA-NEWS. July 13, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it assigned a long-term credit rating of uaBBB- (provisional) to Kiev-based SOYUZ CB JSC (‘bank’). The outlook on the rating is stable. In the course of the rating procedure Credit-Rating considered bank’s financial statements for 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

Bank’s adequate capitalization and liquidity ratios, coupled with sufficient backing from its owners.

High indicators reflecting bank’s performance in its primary business.

Factors constraining the credit rating

Insignificant bank’s clientele, due to short period of operation.

Concentration of the loan portfolio by major borrowers, accompanied by considerable amount of loans granted by discounted bills, which makes the bank dependant upon its biggest customers and may weigh on its liquidity and capitalization.

High concentrations of the bank’s resources by primary creditors, which limit bank’s financial flexibility and raise the liquidity risks.

Retaining adverse environment in the financial sector and real sector of economy - this may prompt erosion in borrowers’ solvency and negatively affect bank’s financial figures.