OREANDA-NEWS. August 9, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it assigned a long-term credit rating of uaBBB to Kiev-based ZLATOBANK JSC (‘bank’). The outlook on the rating is stable. To assign the rating Credit-Rating considered bank’s financial statements for 2008-2009 and 1H2010 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.

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 sufficient capitalization and performance indicators.

The majority of the bank’s key figures that represent its major aspects of activities are in line with average figures in the national banking system.

Low specific gravity of overdue debts in bank’s customer loan portfolio of 0.3% as of Jul. 1, 2010.

Factors constraining the credit rating

Bank’s insignificant clientele due to the institution’s short period of operation.

High concentrations in the bank’s customer loan portfolio by primary borrowers, which makes the bank dependent upon financial state of its biggest clients and which may negatively affect its liquidity and capitalization.

Concentration of the bank’s resource base by principal creditors, which constrains bank’s financial flexibility.

The bank’s risk management system requires enhancements.

Retaining adverse environment in the financial market and real sector of economy which has undermined solvency of certain bank’s borrowers and weighs on bank’s financial indicators.